The European ferro-silicon spot market has edged down further as demand in the steel sector continued to soften prompted by the heavy industry summer break. European steel mills are shutting for an extended period this summer as underlying consumption declines. In some areas the mill shutdowns will be for more than double the usual two-week closures. The European steel sector looked stable in May, with production utilisation rates at 75-80% of capacity, but steel mills were keen to sell material last month before the seasonal slowdown and that prompteda sell-off in raw materials. The Chinese ferro-silicon market has been sluggish in July, with prices hovering at low levels. The spot market has been quiet after low tenders from steel mills forced producers to lower price offers to promote sales. Export business, meanwhile, has been subdued due to weak demand and the arrival of the summer break in the West US industry sources say ferro-silicon prices are being affected by European weakness. US steel production levels may stabilise around the current production rate, however, as the fall in utilisation rates has slowed.
展开▼
