SunSirs: Ferrosilicon Futures Declined and the Spot Market Was on the Lookout
November 23 2022 11:52:26 SunSirs (John)
Price trend
Ferrosilicon futures fell sharply, and the market mentality was mainly cautious and wait-and-see. On the 22nd, the market quotation in the main production areas of Ningxia was mostly around 8,100 RMB/toon, with the average market price of 8,078 RMB/toon, which was unchanged from the previous trading day, and down 5.51% year on year.
Analysis review
At the steel plant end, it is about to enter December, and some steel plants will be stored in winter. It is estimated that the entry inquiry will start at the end of November and the beginning of December. At the current spot price and futures price, it is estimated that the bidding price may be around 8,500 RMB/ton.
In terms of manufacturers, the production of manufacturers in Ningxia was relatively stable. After the resumption of production of Sanyuan last week, it is expected that the output will gradually return to normal this week, and the daily output of ferrosilicon is expected to remain above 15,000 tons/day. At present, the manufacturer still has a small profit, and is not willing to take the initiative to reduce production. The supply side will increase slightly in November.
Market outlook
The steel plant bidding in December is coming. The spot resources of the manufacturers are limited and they are reluctant to sell at a low price. The bidding of steel plants in December is a game between the supply and demand sides. The market price is mainly determined by the pricing of mainstream steel plants and suppliers. In the short term, the spot market of ferrosilicon may operate weakly and stably.
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