Chinese manufacturing activity strengthened in June but the leading indices provided further evidence that the country's steel market recovery will be largely domestically-driven.

Iron ore prices are expected to soften from current high levels in the July-September quarter.

The 2009 ferrosilicon contract price on ZCE closed at 5910 yuan per ton on July 6.

In June, the ferrosilicon market continued to rise steadily.

The 2009 ferrosilicon contract price on ZCE closed at 5808 yuan per ton on July 3.

Analysts said the country should ramp up its efforts to revitalize domestic demand to sustain the improvement in industrial earnings amid mounting uncertainties.

Key finished steel products with a significant increase in imports in May compared to April are oil country goods (up 71%).

The 2009 ferrosilicon contract price on ZCE closed at 5862 yuan per ton on July 2.