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[Ferro-Alloys.com] Due to the epidemic, the transportation was once blocked since the Spring Festival, ferrosilicon products couldn’t be carried out and the semi-coke, one of the raw materials of ferrosilicon production, couldn’t be moved in, the ferrosilicon price soared sharply, the tender price of February was up by around 750 yuan per ton. But, it’s just a flash in the pan. The traffic problem was relieved pretty soon, and the price fell sharply under action of high capacity utilization rate, soft demand and rare deals. Both the tender volume and price of March slumped and the market in March was running weakly.
Many ferrosilicon plants kept production during the Spring Festival and amid the epidemic outbreak, but the downstream demand was soft due the delay of resume work. The ferrosilicon inventories once reached 400 thousand tons at its highest. There were some plants choosing to product avoid the peak hours but there were also some plants resuming work. Overall, the capacity utilization rate and production in March were high. But it’s worth mentioning that some big plants in major producing areas started to cut their production, which was expected to bring some good news to the market.
On the demand side, until the end of March, most projects and construction sites have resumed work, but the most demand cannot be released until April or March. A local big steel mill in Jiangsu took the lead in delivering its Ferrosilicon 72# tender price, which was 5700 yuan per ton, down by 250 yuan per ton vs. February. What’s more, According to data of China Customs, in January to February, 2020, China exported a total of 31390.5 tons of ferrosilicon (>55%), a decrease of around 56.7% year on year, and exported 2988 tons of ferrosilicon (≤55%), a decrease of around 35.6% year on year.
[Ferrosilicon Futures 2005 contract] The ferrosilicon futures market was also pessimistic:
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- [Editor:kangmingfei]
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