Price trend 

With the off-season coming, the pressure on the steel market's fundamentals will gradually intensify. Due to the macroeconomic lull, the steel market was primarily driven by the industrial sector. Coupled with high procurement costs for traders and low market inventory, this provided some support for a weak and stable spot price for ferrosilicon. However, downstream consumption of ferrosilicon remained weak. Following Hebei Iron & Steel's November steel tender pricing, the market was relatively calm, with generally low transaction volumes. Manufacturers may experience inventory buildup, and traders may rush to sell at lower prices. According to the SunSirs commodity market analysis system, on November 14th, the market price of ferrosilicon (grade: FeSi75～B; particle size/mm: natural lumps) in Ningxia was 5,150-5,300 RMB/ton, with an average market price of 5,165 RMB/ton, a decrease of 0.30% compared to Monday.

Influencing factors

Raw material semi-coke market:

The national semi-coke market remained stable last week. Some companies slightly adjusted their prices based on their own sales situation. Coal prices showed signs of easing. The price of small-sized semi-coke in Shenmu market was 800-850 RMB/ton.

Operating Status

Supply was temporarily stable, maintaining the previous status. As of November 13, the national operating rate (capacity utilization rate) was 34.84%, a decrease of 1.42% compared to the previous week; the average daily output was 15,590 tons, a decrease of 4.36% compared to the previous week, a reduction of 710 tons.

Downstream situation

In November, Hebei Iron & Steel Group's (HBIS) 75B ferrosilicon tender price was 5,680 RMB/ton, an increase of 20 RMB/ton from the previous round of pricing. The inquiry price was 5,600 RMB/ton, compared to 5,660 RMB/ton in October. A steel mill in East China finalized its new round of ferrosilicon tender price at 5,789 RMB/ton, with a purchase quantity of 1,000 tons; a special steel mill in East China finalized its new round of ferrosilicon tender price at 5,745 RMB/ton, with a purchase quantity of 1000 tons; a steel mill in South China launched its November ferrosilicon tender, with a purchase quantity of 400 tons. Overseas consumption capacity declined, and order volumes were also lower than before. The FOB price for 72 ferrosilicon was around $1,050/ton, and the FOB price for 75 ferrosilicon was around $1,080/ton.

Market Forecast:

Based on a comprehensive analysis of various factors, given the mixed signals from both bullish and bearish markets, the likelihood of a significant short-term adjustment in the domestic ferrosilicon spot market is low.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.