The Long-short Game in The Ferrosilicon Market Intensifies

Spot side

The pace of factory resumption of production is increasing rapidly, and market supply continues to strengthen. The price of 72 ferrosilicon natural block is 6800-6900 yuan/ton, the price of 72 ferrosilicon standard block is 6900 yuan/ton, and 75 ferrosilicon enterprises mainly deliver previous orders.

The overall market sentiment is flat, the overall market demand has decreased, and some ferrosilicon manufacturers have suspended external quotations. Most manufacturers maintain normal production and sales, with basically no inventory pressure. The market is currently dominated by wait-and-see sentiment.

Futures side

Today, ferrosilicon futures fell and fluctuated, and the main contract futures 2409 closed down 1.19%, closing at 7118, down 68.

Demand side

Superimposed on the traditional off-season, terminals mainly purchase on demand, the willingness to increase inventory is weak, and the mentality is more cautious. Judging from today's market performance, most traders have light transactions, and some merchants maintain low inventory operations.

Trade side

Anyang traders are cautiously watching the market, retail performance is poor, and the trading atmosphere is relatively cold. The tax-free price of 72 ferrosilicon natural block is about 6600-6700 yuan/ton, and the tax-free price of 75 ferrosilicon natural block is 6900 yuan/ton.

In general, with the arrival of the rainy season, terminal demand has declined, and the ferrosilicon market has poor transactions. In order to avoid the risk of falling prices, some merchants are gradually increasing their willingness to reduce prices. At present, the demand for ferrosilicon market is stable. In the short term, we should pay attention to the market and the impact of supply and demand. In the near future, the ferrosilicon market may be mainly consolidated.