Ferro Silicon High Volatility Will Remain in The Short Term

High volatility will remain in the short term

Supply and demand of ferro silicon have both increased, and costs have remained stable, but the uncertainty of energy conservation and carbon reduction and electricity price policies has increased price fluctuations. Looking ahead to the future market, the short-term macroeconomic policy is in a vacuum period, and the resumption of production of steel mills has become the main logic of trading. In addition, manganese silicon has recently risen sharply driven by manganese ore, and the sentiment of the ferrosilicon market has also been boosted. Although the marginal improvement of ferrosilicon supply and demand itself has been achieved, it is difficult to have an independent upward trend. It is expected that the price of ferrosilicon will remain highly volatile in the short term.

On the whole, the supply and demand of ferro silicon have both increased, and the cost has remained stable, but the uncertainty of energy conservation and carbon reduction and electricity price policies has increased price fluctuations. On the supply side, manufacturers resumed production quickly after the Spring Festival, and the daily output of ferrosilicon has rebounded to a historical high for 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. Ferrosilicon export profits have fallen, and the general direction of domestic exports is still to exchange price for volume. On the cost side, the short-term cost of semi-coke remains stable, the settlement electricity price in the production area remains stable, and the reform of new energy grid access 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 transactions. In addition, manganese silicon has recently risen sharply driven by manganese ore, and the sentiment of the ferrosilicon market has also been boosted. Although the supply and demand of ferrosilicon itself has improved marginally, it is difficult to have an independent upward trend. It is expected that the price of ferrosilicon will remain highly volatile in the short term.