China's major steel companies saw their profitability improve in May as demand picked up, the latest data showed.

The 2009 ferrosilicon contract price on ZCE closed at 5812 yuan per ton on July 8.

China's factory activity expanded at a faster pace in June, beating expectations, Reuters reported Tuesday.

The 2009 ferrosilicon contract price on ZCE closed at 5886 yuan per ton on July 7.

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.