China Calcium-Silicon Production Restarts as Ningxia Shuntai Responds to Higher Prices

Ningxia Shuntai

China calcium-silicon production has started to recover after Ningxia Shuntai resumed output following several months of equipment maintenance. The company restarted production as calcium-silicon prices rebounded in early March, supported by lower inventories and renewed restocking from steel mills and cored-wire producers.

Ningxia Shuntai had started maintenance on 10 October 2025 because weak demand and thin margins made continued production less attractive. The restart shows how quickly ferroalloy producers can respond when prices improve and downstream buyers return to the market.

China calcium-silicon production remains constrained overall, despite Shuntai’s return. Output from the country’s six major alloy smelters is still expected to fall in January-March because several producers remain offline or under maintenance.

Higher Prices Encourage Shuntai to Resume Ferroalloy Output

Ningxia Shuntai restarted calcium-silicon production after market conditions improved in early March. Falling inventories helped lift prices, while downstream steel mills and cored-wire producers increased procurement.

Calcium-silicon is used in steelmaking as a deoxidizer, desulfurizer and inclusion modifier. It is also used in cored wire applications, making demand closely tied to steel production, alloy treatment and foundry activity.

The restart suggests that current price levels are now more workable for Shuntai. However, the broader market remains sensitive to margins because calcium-silicon production depends on electricity costs, raw material prices and downstream steel demand.

Production Suspensions Keep China’s Calcium-Silicon Supply Tight

China calcium-silicon production from the six major domestic smelters — Shenghua, Ketong, Shuntai, Shenyu, Yongfeng and Jiamin — is expected to reach 18,200t in January-March. That would be down 16% from 21,700t a year earlier.

The decline reflects production suspensions and maintenance at several producers. Inner Mongolia Shenyu Ferroalloys began maintenance on 1 March and is expected to cut output by about 2,600t before work ends on 1 May.

Jiamin Ferroalloys has remained offline since an explosion on 8 January 2023. Shaanxi Fugu Yongfeng Ferroalloys has also been offline since 30 April 2024 because of high spot inventories and weak margins.

These supply constraints could support prices if steel mill restocking continues. But if demand weakens again, producers may remain cautious about ramping output aggressively.

The Metalnomist Commentary

Shuntai’s restart shows that China’s calcium-silicon market is still driven by short-cycle margin decisions. The key question is whether steel mill restocking reflects real demand recovery or only inventory rebuilding after a period of tight supply.