We expect the Chinese ferro-silicon market to be stable in the near term, with enough support coming from subdued domestic steel and magnesium industry demand, the latter of which uses ferro-silicon as a reduction agent. Ferro-silicon prices should also be supported around current levels as they are close to breakeven costs for producers. As we forecast last month, US ferro-silicon spot prices have eased in recent weeks following the early fnding in the US anti-dumping case against imports from Russia and Venezuela, initially clearing Rus-sia from dumping. Prices have softened in response to the psychological impact of the early ruling, as well as increased infows of cheaper imports into the USA. The pricing setback may prove temporary, however, as the market is expected to recover in the coming weeks amid improved domestic demand. European ferro-silicon prices have strengthened within their current price ranges, with the market setting a platform to breach ?1,200/tonne in line with demand in the steel sector, which is showing signs of picking up across the area.
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