Ferrosilicon Weekly Review (2.20-2.24)

Ferrosilicon Weekly Review (2.20-2.24): Market prices are mixed and inquiries have increased

Ferrosilicon rose and fell mixed this week. First, the black series was dominated by macro and demand recovery expectations, and the market continued to rise. Second, due to the impact of the Alashan coal mine accident, coal prices rose. This week, ferrosilicon futures stopped falling and rose, and the main force reached above 8300 , driving the spot price to follow up, and manufacturers’ inquiries and transactions have increased. Affected by its own inventory and sluggish demand from magnesium factories, the price of 75# ferrosilicon fell, and the price difference with 72# gradually narrowed. In the latter part of the week, the market price was 72#7600-7800, 75#7800-8000 yuan/ton, and the cash natural block left the factory. 72# rose slightly by 50 yuan/ton, and 75# fell 100-200 yuan/ton.


1. The domestic market this week

This week, ferrosilicon went up and down. 72# ferrosilicon rose with the market, and 75# continued to fall. Under the condition that the demand has not yet recovered normally, the trend of the futures market is still a game between reality and expectations. Recently, the country has issued a series of favorable macro policies. development Goals. At the same time, the China Securities Regulatory Commission launched the pilot project of real estate private equity investment funds, which will bring funds to the real estate industry. Driven by the expectation of the economy and demand, the black market continued to rise, and the ferrosilicon futures market followed the black market. For the better, inquiries have increased, manufacturers’ quotations have risen slightly, and transactions have improved. However, the inventory pressure of factories in some areas is still high, and the inventory of delivery warehouses is also showing an increasing trend.

For 75# ferrosilicon, on the one hand, the silicon factory’s own inventory pressure, on the other hand, the demand from the magnesium factory is sluggish, and the purchase is relatively negative. The market price of 75# ferrosilicon fell significantly at the beginning of the week, and the transaction was at 7800 yuan/ton in cash, down 100- from last week. 200 yuan/ton. After the futures rose in the latter part of the week, the market price gradually stabilized.

In terms of steel recruitment: Hengyang Steel Pipe is priced at 8,350 yuan/ton, Jinshenglan Hubei 8130, Jiangsu 8130, Guangdong Yunfu 8250, Guangdong Heyuan 8,270 yuan/ton in cash, and Minyuan Iron and Steel is priced at 8,100 yuan/ton in cash.

2. This week’s export market

Domestic ferrosilicon rose and fell mixed this week. In terms of exports, firstly, the exchange rate is approaching “6.9”, and secondly, the foreign demand has not yet been released. Exporters said that the sales of inquiries and orders were average, FOB72#1530-1560, 75#1610-1640 US dollars / ton, 75# fell 20 US dollars / ton compared with last week. The Indian market remained stable, and the quotation remained at 70#12.5-126,000 rupees/ton.

3.  the downstream market

Magnesium metal: This week, the magnesium ingot market ushered in a turning point after the coal mine accident. With the increase in the prices of coal, ferrosilicon, semi-coke and other products, the transaction price of magnesium ingots also rose from 20,800 to 21,400 yuan within two days. The factory has quoted up to 21,500 yuan/ton of spot exchange, supported by costs, it may be difficult to pull back the price for a while, and we need to pay attention to the follow-up of the 21,500 yuan transaction next week and the subsequent impact of the coal incident.

In terms of steel mills: the macro drive continues to increase. With the gradual warming of the climate, the speed of resumption of work and production has accelerated recently. Driven by demand expectations, the futures snails continue to rise, and spot prices follow suit.

4. Forecast for next week

Ferrosilicon cost support has become stronger, and the contradiction between supply and demand still exists. At the end of next week, pay attention to the performance of a new round of steel bidding prices. It is expected that the market is more likely to stabilize.


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