Ferro silicon will still maintain high volatility in the short term
Apr 14, 2025
Ferro silicon will still maintain high volatility in the short term
Both supply and demand of ferro silicon increased, and costs remained stable, but the uncertainty of energy conservation and carbon reduction and electricity price policies increased price fluctuations.
On the supply side, manufacturers resumed production quickly after the Spring Festival, and the daily output of ferro silicon rebounded to a historical high during the same period. With the improvement of manufacturers' profits, there may still be room for recovery in subsequent supply. On the demand side, the speed of hot metal resumption after the Spring Festival was slightly faster than expected, the profitability of steel mills continued to improve month-on-month, and the sentiment of steel recruitment improved, but the downstream trade market recovered slowly. In terms of non-steel demand, magnesium metal manufacturers continued to support prices, resumed work and production after the Spring Festival, and downstream procurement remained cautious, paying attention to marginal changes in demand after the festival. Ferro silicon export profits fell, and the general direction of domestic exports was still to exchange price for volume.
On the cost side, the short-term semi-coke cost remained stable, the settlement electricity price in the production area remained stable, and the reform of new energy access to the grid may increase the room for price fluctuations. Looking ahead to the future market, the short-term macroeconomic policy is in a vacuum period, and the resumption of production at steel mills has become the main rhythm of trading. In addition, manganese silicon has recently risen sharply driven by manganese ore, and the sentiment of the ferro silicon market has also been boosted. Although the supply and demand of ferro silicon have improved marginally, it is difficult for it to rise independently. It is expected that the price of ferro silicon will remain highly volatile in the short term.
