According to the current actual transaction price of the market, the factory does not have much profit margin. The transaction is in the cost line and is basically maintained. The main producing areas of the factory have been repaired and reduced in the near future. However, in the first half of this year, the price of the ferrosilicon market has been below the 6,000 mark, and the favorable factors of the market are also difficult to shake the market. On the one hand, the start-up and production are still at a relatively high level, and the output pressure is not obvious; It is the long-term discounted state of the disk, and the futures investor's bearish atmosphere is still strong, and it is difficult to pull up the disk, which restricts the spot market.
However, the actual demand side is still performing well, and the crude steel output continues to grow every month. The crude steel output in January is 75 million tons, the crude steel output in February is 74.58 million tons, the crude steel output in March is 80.33 million tons, and the crude steel output in April is 8503. Tens of tons, the export volume is basically maintained at 40,000-50,000 tons / month, and the overall output of magnesium metal is maintained at around 68,000 tons. In the first three months of this year, the main three downstream consumption of ferrosilicon was 422.55 million tons, 406,800 tons, and 437,770 tons. From the data level, the current supply and demand is able to maintain a basic balance, but the market is difficult to rise, mainly due to the impact of the accumulation of the previous period, the futures disk price continued to be low.
The price of domestic market has not changed much in recent days. The export price is maintained at FOB72#1110-1130 USD/ton, 75#1140-1160 USD/ton, but there are also low-cost sources in China. In the international market, there has been no significant change in the Indian and European markets. In the Indian market, the price of Bhutan is temporarily stable and the competition in the factory is fierce. The 70 grade ferrosilicon is quoted at Rs 71,000-74,000/ton and the Bhutan export price is USD 1040-1050/ton. In the European market, the past week has been stable, as the Norweg-based ferrosilicon producer Elkem cut production, supporting European prices. At present, the price of 75 ferrosilicon in Europe is between 1000-1050 Euro/ton. In the US market, the ferrosilicon spot market has gradually stabilized after two weeks of decline. The current market performance is flat, and the current price is at 75#88-93 cents/lb.
China's ferrosilicon is currently trading in general. On the one hand, it is international competition, mainly from Malay competition. Its quotation in East Asia and Southeast Asia is lower than domestic, and domestic pressure is obvious. On the other hand, frequent exchange rate fluctuations also affect export transactions.