Ferrosilicon Weekly Review (3.6-3.10): The keynote of steel recruiting is determined, and it runs downward in a narrow range
Ferrosilicon runs downward in a narrow range this week. The cost of silicon factories has not changed much, the profit margin has narrowed, some factories have begun to overhaul, the supply has dropped, and the daily output of crude steel on the demand side has rebounded, but the volume and price of steel have dropped, exports and magnesium factories have remained sluggish, the market lacks confidence, and the futures market fluctuates. The lower center of gravity moves down, the spot transaction is average, and the price is slightly loose. The mainstream market price in the later period of the week is 72#7500-7650, 75#7900-8000 yuan/ton.
1: The domestic market this week
This week, the domestic ferrosilicon is running weakly, the price of semi-coke as raw material remains stable, the ex-factory of small materials remains at 1270-1500 yuan/ton, the cost of ferrosilicon does not change much, and the cost of production areas is between 7300-7400 yuan/ton Peak costs are lower. On the supply side, with the recent factory maintenance in Ningxia, Shaanxi, Qinghai and other places, the daily production has dropped significantly. On the demand side, the volume and price of steel fell in March, and the export transaction was sluggish. Magnesium plants fell to the cost due to the price of magnesium, and the demand for ferrosilicon is unlikely to improve in the short term. The market lacks good news to boost, the industry lacks confidence, the futures market is weak and volatile, the supply of goods on the market flows out, the manufacturers’ transactions and orders are average, and the price is slightly loose.
In terms of factories: Gansu Chuangyi overhauls 1 unit, Shenmu Longhua overhauls 1 unit, Qinghai Huadian overhauls 1 unit, and Ningxia Xinhua overhauls 2 units.
In terms of steel recruiting: Hegang is priced at 8,150 yuan/ton.
Two: This week’s export market
This week, the country fell steadily and slightly, and the export exchange rate rose to “6.9”. In addition, the foreign orders were general and the export competition was fierce, so the price continued to fall. -$40/ton. The demand in the Indian market is average, the high quotations are reduced, and the price is slightly loose, 70# 12-124,000 rupees/ton, down 0.2-0.4 million rupees/ton.
Three: the downstream market
This week, magnesium ingots fell first and then stabilized. The mainstream market price in the latter part of the week was 20,400-20,500 yuan/ton in cash, down 300-400 yuan/ton from last week. Due to the decline in coal prices, the cost support of magnesium plants has weakened. Magnesium plants are facing high inventory and weak demand pressure. Downstream users wait and see and operate cautiously. The market price of magnesium plants has gradually fallen to cost.
Four: Forecast for next week
Next week, the steel recruitment in the northern area will continue to advance, and the pricing will fluctuate around the price of Hegang. The cost of ferrosilicon has not changed much, the supply has declined, and the recovery of the demand side needs to be strengthened. It is expected that the ferrosilicon market will operate weakly in the short term, and attention should be paid to changes in the start of work.