Ferrosilicon Weekly Review (4.23-4.28): The market sentiment is pessimistic and the silicon market is under pressure

This week, ferrosilicon showed a downward trend. First, the black series fell sharply, steel mills reduced production due to losses, and the negative feedback from the terminal was transmitted to the raw material end. Second, the pricing of steel bids continued to drop. Sufficient and low-priced circulation. Fifth, the suspension of the production of magnesium metal has not been implemented, and the price of magnesium has soared and fallen rapidly. The sentiment in the silicon market is pessimistic. Manufacturers say that inquiries and transactions are deserted. There is a clear state of price but no market. It fell by 100-400 yuan/ton, and 75# dropped significantly.

1. The domestic market this week of ferrosilicon

This week, the FeSi futures are showing a downward trend. The reason is that the decline of steel prices has been accelerating. Recently, the lowest price level of the year has been continuously refreshed. The black line is transmitted from the terminal to the upstream, forming negative feedback. Second, the price of steel bidding continued to fall this week. The price of Kunming Iron and Steel was 7670 yuan/ton, Hengyang Iron and Steel was 7640 yuan/ton, and Jinshenglan Hubei 7700, Jiangsu 7700, Anhui 7700, and Guangdong 7800 yuan/ton in cash. The pressure on steel bidding further hit market sentiment. Third, the supply of goods on the market is always lower than the manufacturer’s quotation, and it is difficult for the factory to accept orders. Fourth, the suspension of production of magnesium metal has not yet come to fruition, the price of magnesium has risen and dropped rapidly, the pace of 75# iron transactions has slowed down, and the price has followed suit. The main futures contract fell below the cost, and a new round of bottoming began. The pessimism of the spot market spread, and the state of price and no market was obvious. The performance of inquiries and transactions was deserted. Pressing down, some areas with high costs are already in a state of slight losses.

2. This week’s export market of ferrosilicon

This week, the export transaction was deserted, and the price dropped slightly by US$10/ton, FOB72#1430-1460, 75#1540-1570 US$/ton. Exporters said that all inquiries and transactions were deserted. The impact of low-priced goods from other overseas countries made domestic export transactions difficult and profits thin. European 75#1750-1840 Euro/ton, down 20-50 Euro/ton.

Prices in Bhutan and India have risen this week. The mainstream ex-factory quotations for 70-75% FeSi have risen to 120,000-122,000 rupees/ton, while the quotations of individual factories are at 1.23 million rupees/ton. According to the factory, firstly, the problem with the power station caused the production to be blocked, and the supply decreased.

3. The downstream market of ferrosilicon

Magnesium metal: May 1st is approaching, and most replenishment customers began to purchase at the beginning of the week. The increase in inquiries led to an increase in factory quotations, pushing the market transaction to 23,500-24,000 yuan/ton in cash, but the market demand continued to weaken after a short-term improvement, fell back to 22,000-22,500 yuan/ton cash in the latter part of the week, and the high-profile environmental protection news also came to an end at the end of the month.

4. Forecast for next week of ferrosilicon

The implementation time of semi-coke rectification is delayed, and the price of semi-coke is expected to loosen in the future, and the cost support of ferrosilicon is expected to weaken. After the May 1st holiday, steel recruiting will continue to advance, and the pricing of steel recruiting is not optimistic. It is expected that the spot operation will be weak, and attention will be paid to changes in the start-up of manufacturers.


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