1.Tightening Raw Material Supply and Cost Push Continue to Support Ferrosilicon Markets
Since May 2026, the ferrosilicon (FeSi) market has shown a clear upward trend driven by multiple factors including raw material volatility, futures market sentiment, and tightening spot circulation. As the steel industry gradually enters the traditional demand recovery cycle, ferroalloy producers are facing increasing production cost pressure from coke, electricity, and reductants. At the same time, market participants remain cautious about future supply stability. Against this backdrop, FeSi futures repeatedly moved above the USD 885 level, while spot quotations in major producing regions continued to rise. The recent market rally once again demonstrates how sensitive ferroalloy pricing remains to upstream energy and raw material fluctuations, especially under sudden “black swan” events.
2.Coal Mine Explosion Triggers Nationwide Safety Inspections, Boosting Ferrosilicon Prices
Last week, a major gas explosion accident occurred at Shanxi Tongzhou Group’s Liushenyu Coal Mine, triggering nationwide coal mine safety inspections and partial production suspensions across Shanxi, Shaanxi, Inner Mongolia, Henan, and other key coal-producing regions. The incident rapidly fueled bullish sentiment across the black commodity sector. Coking coal futures opened limit-up, driving broader gains in black commodities including ferrosilicon.
Following the accident, chemical coke producers in Ningxia and Inner Mongolia raised coke prices by approximately USD 7.37/ton , further increasing production costs for ferrosilicon producers. Many FeSi factories reacted quickly by temporarily suspending quotations while monitoring market direction, electricity pricing adjustments, and raw material movements. Spot prices for 72# ferrosilicon reportedly increased to around USD 818–833/ton, while 75# material rose toward USD 870–885/ton ex-works.
3.Chinese FeSi Market Volatility May Affect Export Offers in the Near Term
With domestic ferrosilicon prices moving upward following recent fluctuations in raw material costs, Chinese ferroalloy producers are becoming increasingly cautious with export offers. Some factories have temporarily suspended quotations while closely monitoring coke prices, electricity costs, and overall market sentiment.
Although international ferrosilicon prices have not fully followed the domestic rally, continued volatility in China’s market may gradually influence export pricing and shipment arrangements in the coming weeks.
Conclusion
Looking ahead, market participants will continue closely monitoring coal supply conditions, ferrosilicon production rates, and upcoming electricity price adjustments, all of which are expected to remain key factors shaping short-term FeSi price trends.
Under the current market environment, stable supply capability and timely shipment arrangements are becoming increasingly important for international buyers.
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