Higher energy costs and raw material constraints across Asia's key ferro-alloy producing regions have helped maintain prices despite subdued underlying demand, according to market participants cited by Fastmarkets. Smelters in China, India, and Southeast Asia have reported rising production costs or operational uncertainty, limiting their willingness to reduce offer prices even as consumption remains weak. In China, ferro-alloy producers have faced higher production costs due to rising coke and semi-coke prices, particularly in northern regions where coal supply has tightened.
Ferro-silicon, ferro-chrome, and manganese alloy producers in Inner Mongolia and Ningxia have experienced increased costs from more expensive semi-coke and coke. A Chinese ferro-alloy producer told Fastmarkets that coal availability could tighten further during the winter heating season if mining output does not increase sufficiently. Fastmarkets' weekly price for coke with 65 percent CSR, free on board China, was $340 per tonne on September 22, up by $62.50 per tonne from the midpoint of $275-280 per tonne on August 4.
According to one market participant, coke-related costs alone have increased ferro-alloy production costs by more than 200 yuan (approximately $30) per tonne over the past two months, based on estimated coke consumption of around 0.5 tonne per tonne of alloy produced. Some producers have also reported higher electricity costs. One Chinese market source indicated that electricity prices for some northern smelters increased to 0.45 yuan per kilowatt-hour in August from 0.40 yuan per kilowatt-hour in July.
The source added that Ulanqab, a traditional ferro-alloy production hub that produced 13.24 million tonnes of ferro-alloys in 2025, is increasingly attracting artificial intelligence data centres because of its relatively low-cost energy supply. These facilities are drawing on the region's competitive power resources and could increase electricity costs for smelters unless additional low-cost generation becomes available. Fastmarkets' weekly assessment of silico-manganese with 65 percent manganese minimum and maximum 17 percent silicon, in-warehouse China, was 5,550-5,700 yuan per tonne on September 18, compared with 5,600-5,700 yuan per tonne a week earlier.
Fastmarkets' weekly assessment of ferro-chrome spot with 6-8 percent carbon, basis 50 percent chromium, delivered China, was unchanged week on week at 8,000-8,200 yuan per tonne on September 22. Fastmarkets' weekly assessment of ferro-silicon with 75 percent silicon minimum, in-warehouse China, was 6,000-6,300 yuan per tonne on September 23, compared with 6,150-6,350 yuan per tonne a week earlier. Indian ferro-alloy producers have also reported rising raw-material costs as imported coke and coking coal prices remain elevated.
An Indian alloy producer told Fastmarkets that India is heavily dependent on imports of coke and coking coal, so higher international prices are pushing up input costs for ferro-alloy producers. The producer added that cheaper inventories purchased earlier are being depleted, and replacement material is significantly more expensive. The higher production costs have helped keep export ferro-chrome prices largely stable across East Asia.
Fastmarkets' fortnightly assessment of ferro-chrome high carbon with 57-65 percent chromium, cost and insurance, free to user Japan, was $1.01-1.08 per pound on September 17, compared with $1.02-1.08 per pound two weeks earlier. Fastmarkets' fortnightly assessment of ferro-chrome high carbon with 57-65 percent chromium, cost and insurance, free to user South Korea, was $0.99-1.06 per pound on September 17, compared with $1.00-1.06 per pound previously. Water shortages in Malaysia and Indonesia have emerged as an additional risk to ferro-alloy production, particularly in regions reliant on hydropower.
Malaysia's ferro-alloy industry has traditionally benefited from abundant hydroelectric power, making the country a competitive producer of ferro-silicon and silico-manganese. However, the current water shortage is creating uncertainty around alloy production and supply. A Malaysian ferro-alloy producer told Fastmarkets that while the company regularly ships material to Japan, it is now difficult to determine how much volume it can confidently offer.
Fastmarkets' assessment of ferro-silicon with 75 percent silicon minimum, cost and insurance, free to user Japan, was $1,290-1,310 per tonne on September 23, compared with $1,290-1,330 per tonne a week earlier. Market participants also cited water shortages in Indonesia as a factor affecting local smelting operations, although no significant impact on alloy prices has yet emerged. Fastmarkets' weekly assessment of nickel pig iron with 10-14 percent nickel content, free on board Indonesia, was unchanged at $135-147 per nickel unit on September 23.
Source: fastmarkets.com