According to the price monitoring of SunSirs, the price of ferrosilicon (grade: FeSi75～B; grain size/mm: natural block) in the main producing area (Ningxia region) was 5,533 RMB/ton on September 30, and 5,550 RMB/ton on October 30, the price is stable compared with last month.
Ferrosilicon operating rate and production capacity increased
In October, the operating rate of independent ferrosilicon enterprises nationwide was 48.34%, which was basically the same as the previous month; the average daily output was 15,017 tons, an increase of 100 tons. Recently, the factory had started operations generally normally, and transactions were mainly small orders. Shaanxi Shuangyi's newly-built ferrosilicon production capacity was put into production this week, and the other is scheduled to be put into operation in ten days. Shaanxi Fugu Qianxin's new production capacity was put into the market last month, and subsequent lean chemicals will also be put into production. A plant in Ningxia Zhongwei planed to resume production at the end of the month. The current spot performance of ferrosilicon manufacturers was tight, and the new production capacity had not yet affected the market.
Supply and demand
In October, the national demand for the five major steel grades of ferrosilicon was 29,194 tons, an increase of 0.31% from the previous month, and the steel mills started operations. In the case of magnesium plants, the downstream demand is poor, and prices continue to decline. The production of the plant is under pressure. However, the current plant is operating at a high level. The plant has not yet seen a large-scale reduction in production. The demand for 75 ferrosilicon is acceptable, but the Shaanxi region has successively increased production capacity. Later, it will have an impact on the local market.
Impact of the raw material
The time when the Qinghai silica mine will resume production is unknown. At present, the Qinghai silica mine is still in a state of suspension, and the resumption time is yet to be determined. Some manufacturers with less silica stocks choose to purchase from the Gansu area, and the cost of the factory will increase by about 80-100 RMB/ton. However, the main producing area (Ningxia) has not yet been affected.
Analysis and forecast
In the short term, the ferrosilicon market has not changed much. The factory maintains the order status, the price is relatively stable, the disk is still in a narrow downward trend, and the delivery speed of the delivery warehouse increases. The steel bidding in October has basically come to an end, and there are some expectations for the steel bidding in November, and there are also some worries. Although the steel bidding increased in October, the trading space for traders is relatively narrow. Many people in the industry are not particularly bullish about the steel tenders next month. If there is no doubt that there is a profit margin for price increases, and there are still partial profits for flat trading, the decline in steel tenders has become a key contradiction in whether traders consider hoarding goods. It is expected that the domestic ferrosilicon market may continue to operate smoothly in the short term.
If you have any questions, please feel free to contact SunSirs with email@example.com.