Silicon social inventories extended declines this week

Teck Resources reported Q2FY2026 molybdenum production of 840 tonnes at Quebrada Blanca, up about 95% from 430 tonnes a year earlier and 31% from 640 tonnes in Q1FY2026. The company attributed the increase to another quarter of strong operational performance and process stability, indicating a marked rise in by-product molybdenum supply from the mine.

European governments are preparing to seek broader safeguard measures against surging imports, primarily from China, marking a further shift toward tighter trade protection as European industrial sectors face high energy costs and weak demand. The European Union currently has a safeguard regime covering ferro-alloys, while governments including France, Italy and Germany are now pushing for additional investigations covering chemicals and plastics. For the chromium market, the development could have implications beyond the products directly targeted by the new proposals. A more protectionist EU trade environment could alter stainless-steel import flows and procurement strategies, potentially affecting demand for ferrochrome and the competitiveness of overseas suppliers. With the EU already using trade safeguards for ferro-alloys, further expansion of trade-defense measures could increase uncertainty for global ferrochrome flows and premiums, particularly if protection increasingly extends across both upstream alloy inputs and downstream steel products.

[Cost Support Combined with Supply-Demand Tug-of-War Keeps Silicon Metal Prices in Stalemate]: Silicon metal trading saw a tug-of-war between sellers and buyers, with prices consolidating in a stalemate. As of September 10, SMM oxygen-blown #553 silicon in east China stood at 9,400-9,600 yuan/mt, up 50 yuan/mt WoW, while #441 silicon was at 9,500-9,700 yuan/mt, flat WoW. In the futures market, the SI2611 contract moved sideways around 8,700-8,900 yuan/mt during the week. Affected by the tug-of-war between longs and shorts, prices repeatedly pulled back and forth around the 8,800 yuan/mt level, with Friday's close at 8,745 yuan/mt, up 10 yuan/mt WoW. In terms of market quotes and transactions, silicon producers maintained firm offers, with quotes largely stable during the week. Spot-futures traders also held prices relatively firm amid high-level consolidation in futures. Recently, trucking freight rates have stayed high, and downstream acceptance of high-priced spot cargo was moderate. Some users showed weaker purchasing enthusiasm compared with the previous week, with the market dominated by buying on dips or just-in-time procurement. Wait-and-see sentiment persisted, and transactions overall maintained a just-in-time pace, leaving the price center in a stagnant stalemate.