ferro silicon price
In the mid of Nov,2020, the market performance is relatively stable, the futures market fluctuates around 5900 RMB/T, the factory mainly places orders, and the quotations are concentrated at 72#5450-5650, 75#5800-5850 RMB/Ton cash natural size leave the factory. Due to the lack of 75# production enterprises and the increase in the price of magnesium metal, the low price of 75# is gradually increased. There is no news in the market, and the overall wait-and-see atmosphere is relatively strong, waiting for a new round of steel bidding.
The ferro silicon market is currently in a state of difficulty in both ups and downs: First, the factory has increased costs and is unwilling to ship at low prices. The price of blue charcoal rose from 500 RMB/T ex-factory to 630-700 RMB/T ex-factory, an increase of 130-200 RMB/T.Silica in Qinghai area increased from 90-100 yuan/ton to 180-200 RMB/T to the factory, an increase of 90-100 RMB/T, Gansu, Ningxia, etc. purchased silica from Gansu, the price also increased by 20-30 RMB/T.
Factories are not willing to ship at low prices in the face of rising raw material costs. Second, due to the impact of the epidemic and the Spring Festival in the first quarter of this year, ferro silicon manufacturers have large inventories. Starting from April and May, as the epidemic progresses, downstream production resumes and the demand increases, the factories are basically in In the state of order production, there are fewer stocks, and the price is gradually rising. On the downstream side, the bidding prices of steel mills this year are generally significantly lowered. Traders are more difficult to operate, have limited profit margins, and have a low acceptance of high prices from factories.
In short: factories are supported by cost and tight spot prices, low willingness to ship at low prices, while middlemen have small operating space and thin profits, and generally accept high prices. Futures are slightly discounted and fluctuate, which suppresses market sentiment. In the short term, the ferro silicon market is difficult to rise or fall, and it runs steadily.