Ferrosilicon Weekly Review (3.20-3.24): Ferrosilicon Production Reduction Superimposes Semi-coke Production Limit
This week, ferrosilicon futures first fell and then rose sharply, and the spot price adjusted within a narrow range. At the beginning of the week, the market did not change much, and the downstream just needed to purchase, and the transaction was deserted. With the increase in production reduction of ferrosilicon furnaces, limited production of semi-coke and guaranteed prices, and rumors in the market that energy consumption in Wuzhong City has been warned, the market has increased significantly in the latter part of the week, and the main contract has approached 8100 points, and inquiries in the spot market have increased. At the end of the week, the market price is 72#7400-7600, 75#7900-8000 yuan/ton, and the natural block leaves the factory.
1: The domestic market this week of ferrosilicon
This week, ferrosilicon was weak at first and then strong. At the beginning of the week, the market was sluggish, downstream just needed to purchase, market inquiries and transactions were deserted, factory profits narrowed, furnaces for maintenance increased, factories in Inner Mongolia, Gansu, Qinghai and other places shut down, and the supply of ferrosilicon continued to show a downward trend. Shenmulan Coal Group issued a notice of production restriction and price protection, indicating that the semi-coke market is weak and the company is in a state of continuous loss. All companies immediately limit production and reduce production to below 35%. / ton, coke surface 1000 yuan / ton, coal tar (heavy) 4200 yuan / ton. One is that the supply of ferrosilicon has declined, the other is that Shenmulan Coke has limited production and guaranteed prices, and the third is that there are rumors in the market that Wuzhong City has an energy consumption warning. Increase.
In terms of steel recruitment: Minyuan Iron and Steel is priced at 7850 yuan/ton in cash, a steel factory in Guangdong is 8050 yuan/ton for acceptance, Jinshenglan Hubei 7880, Jiangsu 7880, Guangdong Yunfu 8000, Guangdong Heyuan 8050 yuan/ton in cash, Yunnan Kunming Steel 8090 yuan/ton Ton.
2: This week’s export market of ferrosilicon
The export market has little change this week, with few inquiries from foreign customers, and the price remains stable, FOB72#1460-1500, 75#1560-1600 USD/ton. There are sources of goods excluding tax in the market, and the competition at home and abroad is fierce. The transaction in the Indian market is average, and the price has not changed much this week, maintaining at 70#118,000 rupees/ton.
3: the downstream market of ferrosilicon
In terms of metal magnesium: this week the magnesium market first fell and then stabilized. The market resumed at the beginning of the week, and the quotations of magnesium plants continued to be under pressure. After the magnesium price fell below the 20,000 mark, the decline slowed down. It is reported that Fugu Xintian plans to stop production on the 25th, Houdajinggou has already stopped production, and Jin Wantong also has the willingness to reduce production. At the end of the week, the mainstream magnesium price was 19,900-20,000 yuan/ton in cash, down 200 yuan/ton from last week.
4: Forecast for next week of ferrosilicon
The silicon factory is in the state of inventory reduction, and the manufacturer’s inventory is transferred to the delivery warehouse. At the end of next week, steel bidding will start in April. Pay attention to the pricing of subsequent steel bidding. After the spot market rises, the factory’s low quotation will decrease.