Recent Market Trends of Ferrosilicon

Introduction: In the first quarter, the overall ferrosilicon market is affected by multiple factors, including the continuation of the double weak supply and demand relationship, high corporate inventories, the cost of continuous decline, the industry's low economic efficiency, a number of producers therefore chose to shut down for maintenance to cope with the continuing market pressure. However, after April, the market began to gradually pick up, with the enterprise inventory continued to reduce, ferrosilicon spot supply as a whole presents a tight situation, the factory warehouse resources and even face the situation of no goods to sell. In this resource shortage situation, the market demand performance can continue to be good, whether the price of steel trick can run firm, next, this article will analyse the recent ferrosilicon market situation.

Recent ferrosilicon market liquidity is better, the futures market high level to give the market a certain confidence, the market sentiment also has a certain drive. May ferrosilicon market there is an increase in production, supply and demand will show an increase in momentum, in the factory inventory is low, the social inventory is concentrated in the case of ferrosilicon market or will be difficult to change the situation of spot tension. According to the current situation, ferrosilicon heat is still in the short term, the market or will maintain high shock operation, with the ferrosilicon production rapidly enhance the background, the long-term need to pay attention to the supply increase on the market to bring the risk of impact.

Supply: 24 years of ferrosilicon market new put capacity speed slowdown, put into production projects to wait and see. Accompanied by a slight improvement in demand performance, ferrosilicon enterprises are currently receiving good orders, the market resource consumption there is toughness. May by the steel trick rose favourable stimulus, corporate orders profit margins increased, ferrosilicon enterprise production willingness to significantly improve, due to the individual enterprises have been hedging disc-based, ferrosilicon production will increase in the near future.

Cost: pre-holiday lancel raw material prices have been implemented up, and most ferrosilicon enterprises have been stocking up, the first half of May lancel supply is slightly loose, so the short-term lancel rising rhythm or will slow down. Electricity price end of the fluctuation is not big, by the transaction mode and hydroelectric power generation, the individual producing areas of electricity prices slightly down 2 cents or so, the power is currently down space is limited.

Demand: the current macro sentiment is neutral, steel is still in the supply and demand recovery stage, steel mills enterprise part of the varieties of profitability improvement, with the iron resumption of production increased, as well as stainless steel production steady rise to give ferrosilicon demand a certain positive support, iconic steel trick is about to be priced, the short-term ferrosilicon steel trick or maintain firm.