Weekly Commentary on Ferrosilicon Market (7.13-7.17)

  • Friday, July 17, 2020
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon,futures,spot
[Fellow]With the continuous rise of recent prices, the operating rate of ferrosilicon plants continues to increase this week.
 
[Steel mills tender] Ferrosilicon tender of steel mills of July has almost finished and the bidding price of 75B ferrosilicon was up 180-190 yuan per ton from last month.
 
[Spot market] With the continuous rise of recent prices, the operating rate of ferrosilicon plants continues to increase this week. Most manufacturers are still arranging orders for production, and large factories still say that "there is no spot and no quotation for the time being"; on the other hand, this round of steel bidding is basically completed, the spot transaction is rarer, and the delivery warehouse inventory is gradually flowing out to the market, which will bring pressure on the spot price, while some manufacturers will increase the number of furnaces again, which will affect the existing supply-demand pattern, most of the participants kept cautious on the market.
 
[Ferrosilicon futures 2005 contract] Opening price of ferrosilicon futures 2005 contract of this week was 5,732, highest price was 5,742, lowest price was 5,524, closing price was 5,584 and the settlement price was 5, 566. The positions were 33,809 and the trading volumes were 116,329.
 

[Steel market] According to statistics, the rebar output has been on the rise trend for four consecutive months (according to the data of National Bureau of Statistics: in June 2020, China's crude steel output was 91.58 million tons, with a year-on-year increase of 4.5%; from January to June, the crude steel output was 499.01 million tons, a year-on-year increase of 1.4%). In the week of July 9, the total stock of rebar had risen to 11.5838 million tons. However, the rise of raw material prices pushed the steel prices to rise, and the manufacturers mainly strengthened the price, and the short-term steel prices would fluctuate in a narrow range.
 
[Metal magnesium market] The price of metal magnesium continues to decline. The current cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 12900 yuan per ton. The inventory has a trend of increasing gradually. We should pay attention to the change of demand for 75% ferrosilicon.
 

 

  • [Editor:kangmingfei]

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