Ferrosilicon market rebounds with fluctuations

Spot side

Factories have gradually resumed quotations, and market quotations have fallen slightly. The price of 72 ferrosilicon natural blocks is 6850-6950 yuan/ton, and the price of 75 ferrosilicon natural blocks is 7500-7600 yuan/ton. Considering that the current market transactions are relatively weak, the market decline is expected to be limited.

The spot price of ferrosilicon market has weakened slightly, and the transaction situation has improved. Traders' purchases are mainly based on rigid needs, and the market is more cautious about raw material purchases.

Futures side

Today, ferrosilicon futures fluctuated and rebounded. The main contract futures 2409 closed up 1.14%, closing at 7114, up 80.

Demand side

From the perspective of supply, this week (6.13) Mysteel counted 136 independent ferrosilicon enterprise samples nationwide: the operating rate (capacity utilization rate) was 38.77% nationwide, an increase of 1.06% from the previous period; the average daily output was 16,105 tons, an increase of 460 tons from the previous period. The social inventory is high, and the constraints of poor demand on the production end still exist, and there is a certain lag. It is difficult to continue to increase the supply in the short term. Most companies have profits, and the operating rate and capacity utilization rate continue to rise. From the perspective of demand, the profits of long-process steel mills have been restored, boosting the production enthusiasm of enterprises. This week, the supply of the five major steel varieties is 8.9721 million tons, an increase of 10,800 tons from the previous week, an increase of 0.1%. Last week, Hegang ferrosilicon set the price of ferrosilicon. This week, northern steel biddings have successively referred to Hegang's pricing. On June 12, a steel plant in Jiangsu bid for ferrosilicon at a price of 7,500 yuan/ton, with a quantity of 1,000 tons, and acceptance tax included to the factory.

Trade side

Anyang traders are mainly on the sidelines, and the market tone of Hegang's pricing is basically determined. The price of 72 ferrosilicon natural blocks is about 6,700 yuan/ton excluding tax, and the price of 75 ferrosilicon natural blocks is 6,900-7,000 yuan/ton excluding tax.

The ferrosilicon futures market rebounded in shock, the warehouse receipt cancellation date is approaching, spot transactions are sluggish, short selling is still going on, spot prices do not fluctuate much, transactions are average, traders mainly purchase based on rigid demand, and overall the fundamentals of the ferrosilicon market are calm, or maintain weak and stable operation. In the future, we will pay attention to the production reduction drive and steel recruitment in the off-season of steel.