SunSirs: Negative Information Basically Dominates the Downward Trend of Ferrosilicon Spot Prices

The ferrosilicon futures market has been going down all the way, and the decline in the market price has severely "poured cold water" on the market. In addition, the market demand is relatively weak, the market direction is unclear, and the purchasers are not very active in purchasing. The "buy high, not buy low" sentiment and the lack of confidence in the later market have led to a relatively cautious attitude of purchasers and most of them have a certain price-cutting sentiment. In addition, due to the traditional off-season of the industry, the steel market is weak. Recently, some steel mills have stopped production, reduced production, and overhauled news. The negative information such as the need to improve the support of the ferrosilicon cost side basically dominates, and the ferrosilicon spot market continues to be weak. According to the commodity market analysis system of SunSirs, the market quotation of ferrosilicon (grade: FeSi75~B; particle size grade/mm: natural block) in Ningxia on August 9 was 6,300 RMB/ton, and the market average price was 6,400 RMB/ton, a decrease of 5.11% from the beginning of the week.

Price trend

Raw semi-coke market: The national semi-coke market remained stable this week, and the main tone of the market price was still stable, but the coke transaction was slightly poor. Some companies mainly offered low prices to speed up the delivery of goods, and some companies were reluctant to sell, and the transaction situation of each company was different. As of August 9, the mainstream price of small and medium-sized materials in Shenmu market is 855-920 RMB/ton, and the coke is 650-710 RMB/ton; the mainstream price of small and medium-sized materials in Fugu market is 880-1000 RMB/ton, and the coke is 700-750 RMB/ton; the mainstream price of coke in Zhongwei market is 630 RMB/ton; mixed materials in Shizuishan market is 720 RMB/ton; small and medium-sized materials in Ordos market are 840-920 RMB/ton, and coke is 730-740 RMB/ton; small and medium-sized materials in Hohhot market are 920-950 RMB/ton, and coke is 750 RMB/ton; small and medium-sized materials in Hami market are 920-1050 RMB/ton, coke is 380-1050 RMB/ton, and mixed materials are 290-360 RMB/ton; small and medium-sized materials in Changji market are 850-1220 RMB/ton, and coke is 550 RMB/ton. The above are ex-factory prices in cash including tax. The price of small and medium-sized semi-coke in Tianjin Port is 1180-1220 RMB/ton, and the price of coke is 950 RMB/ton. The above are all port closing prices in cash including tax.

Analysis review

Steel mills began to enter the market for purchases in August this week. At the beginning of the week, the iconic steel mills in the south released bidding prices, which were around 7,000 RMB/ton, including tax, to the factory. Today, the bidding price of ferrosilicon in a steel mill in Henan is 6,680 RMB/ton, the quantity is 1,000 tons, and the cash is including tax to the factory. The seasonal off-season performance of downstream construction steel is gradually strengthening, the expectation of improved demand is gradually weakening, and the decline in profitability has caused the production status of enterprises to be significantly inferior to the previous period, but because the overall environment of policy reduction remains unchanged, the overall incremental space is still limited. At present, the demand for ferrosilicon purchased by steel mills has a certain reduction.

Market outlook

In general, the decline in ferrosilicon futures is large, the market sentiment has increased to a certain extent, and the speculative sentiment has declined, especially after the steel bidding price appeared. The price decline has contributed to the tense market mentality. At the same time, the iconic steel mills in the south have already made qualitative statements, and the expectation of the release of the short-term sharp fluctuations in the spot price of ferrosilicon is questionable.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.