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SunSirs: Analysis of domestic ferrosilicon spot market (Jan.6th–Jan.10th)

January 10 2020 16:12:23     SunSirs (Molly)

1. Price trend

According to SunSirs price monitoring, this week silicon iron market mainly goes up. At present, the mainstream offer price in the domestic market of ferrosilicon 75# is around 6000 yuan/ton, while the price of ferrosilicon 72# is 5500-5700 yuan/ton, which is a slight increase compared with the quotation of ferrosilicon last week.

2. Analysis of influencing factors

Recently, winter transport costs increase. The factory in order to avoid peak, most of them stopped the furnace. And ferrosilicon steel recruitment tone is clear, procurement customers have started to prepare goods; Manufacturers are mainly to arrange production, so most of them do not have the inventory pressure. The short-term market will be relatively stable. And as the Spring Festival holiday approaches, the pre-holiday market may have been difficult to change significantly. As for the later trend, also need to pay close attention to the situation of return of the enterprise and supply and demand changes.

Steel Aspect: it is reported that near the Spring Festival part of the long process steel mills have begun production line overhaul, short process furnace steel mills will gradually stop production. In the next one to two weeks, Fujian, Guizhou and other local electric furnace enterprises will usher in a comprehensive shutdown, the formation of a certain impact on steel output. In terms of demand, as the Spring Festival approaches, steel demand will continue to show a seasonal decline, the downstream construction sites in the southern region into the final inventory link.

Then the downstream terminals have been closed, the enthusiasm for procurement will reduce. Metal magnesium market: the latest news, at present 99.9% magnesium ingots Fugu area factory quotation mainly concentrated in the cash tax 13900-14000 yuan/ton vicinity. At present, the market demand performance is still relatively stable, magnesium plant inventory is generally not much, in the short term, the metal magnesium market maybe will continue to maintain a stable state of operation.

In terms of futures market, today's main ferrosilicon futures 2005 contract continued the recent narrow range of oscillating operation. After a slight surge in early trading, the turbulence fell and it recovered slightly in the late session. The intraday high was 5,822 points, and the lowest was 5,784 points.

3. Future forecast

In conclusion, in the short term, Ferrosilicon analysts at SunSirs predict that ferrosilicon prices will increase.   

 

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