Dec 17, 2025 Leave a message

Why Do Ferrosilicon Prices Vary Between Suppliers

 

Ferrosilicon prices can look confusing: two suppliers may quote noticeably different numbers for the "same" grade-especially for FeSi 72 and FeSi 75. In many cases, the difference is not random and not simply a matter of who wants the business more. Price gaps usually reflect a combination of specification details, execution capability, and risk allocation.

Below are the most common reasons ferrosilicon prices vary between suppliers-and how buyers can compare quotes correctly.

 

1) "Same Grade" Does Not Always Mean the Same Specification

FeSi 72 and FeSi 75 are grade labels, but real-world contracts often include additional controls such as:

  • Silicon range (tight vs broad range)
  • Aluminum level (standard vs low-Al)
  • Carbon / sulfur / phosphorus limits
  • Size distribution (10–50 mm vs mixed sizes; % fines allowed)

A supplier offering tighter limits is usually carrying higher production control and sorting cost. If two quotes differ, ask for the COA template and the contracted limits, not only the headline grade.

 

2) Particle Size, Fines Percentage, and Sorting Cost

Size matters commercially. A quote for "lumps" can still hide a high proportion of fines unless it's clearly defined. More screening, sorting, and consistent sizing means:

  • higher processing cost
  • lower yield for the producer (more off-size material)
  • higher packing and handling requirements

If your process needs consistent lumps and minimal fines, you should expect a price difference compared with a mixed-size, loosely defined cargo.

 

3) Quality Consistency and Batch-to-Batch Stability

Some suppliers can deliver one good batch, but struggle with consistency across repeat shipments. Buyers who need stable long-term supply often pay a premium for:

  • reliable repeatability
  • stable COA results across lots
  • fewer claims and fewer production interruptions

A low price can become expensive if it leads to re-testing, rejection, or yield loss in production.

 

4) Packaging Standards and Moisture Protection

Export packaging is not a small detail. Better packaging (liner bags, clean loading, palletization where needed) reduces:

  • moisture pickup risk
  • contamination during shipment
  • claims and disputes on arrival

Suppliers quoting higher may be including stronger packaging standards, while cheaper offers may assume basic packing with less protection.

 

5) Port, Terms, and "Hidden" Logistics Differences

Even under the same Incoterm, execution conditions differ. For example:

  • FOB at different ports can have different cost structures
  • shipment schedule and booking difficulty can change real execution cost
  • a supplier's proximity to the port affects inland logistics

Always confirm whether the price truly includes what you expect: export packing, documentation, inspection support, and loading coordination.

 

6) Payment Terms and Risk Pricing

A quote can vary because of payment structure:

  • LC vs TT
  • deposit ratio
  • credit terms
  • timing of payment against documents

Suppliers price risk. More flexible payment terms often mean a higher unit price.

 

7) Market Timing and Inventory Position

Some suppliers quote from existing inventory; others quote based on new production schedules. Inventory-based offers can be:

  • lower (if they want to move stock)
  • higher (if inventory is tight and they hold leverage)

Ask whether the offer is from ready stock or production.

 

How Buyers Should Compare Quotes (Practical Checklist)

To compare suppliers fairly, line up these items:

  1. contracted Si range + impurity limits (C/P/S/Al)
  2. particle size + fines allowance
  3. packaging type + moisture protection
  4. COA per lot + inspection support
  5. shipment window + port execution ability
  6. payment terms and documentation

If these are not aligned, the cheapest quote may not be the best deal.

FerroSilicon
FerroSilicon
FeSi
FeSi

Company Background

 

ZHEN AN INTERNATIONAL CO., LIMITED is located in Anyang City, Henan Province, China, supplying ferrosilicon 72 and 75, along with silicon metal, calcium silicon products, and electrolytic manganese flakes, to industrial customers worldwide. Zhen An focuses on consistent quality control, export-ready packaging, and reliable shipment coordination for overseas markets.

 

 

 

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