Ferrosilicon market analysis

Futures end: the main 03 contract of ferrosilicon closed 6346, +1.76%, up 110, a one-day reduction of 540 positions. Spot end: The ferrosilicon market is weak, wait-and-see sentiment is strong. The main production areas of iron silicon 72 iron silicon natural block cash including tax factory 5850-6000 yuan/ton, 75 iron silicon price is 6250-6400 yuan/ton.

On the supply side: the futures board has rebounded slightly, the cost of superimposed ferrosilicon is higher, the willingness of manufacturers to cut prices and sell is low, and the spot price is more chaotic. In the morning, the ferrosilicon market is generally traded, the downstream procurement is on demand, the production reduction of ferrosilicon is increased, and the current ferrosilicon market is in a single cycle. The price of carbon is temporarily stable in the short term, and the mainstream price index of small and medium-sized materials in the current Fugu market includes 806.3 yuan/ton of cash tax.

Downstream: with the approach of the Spring Festival, downstream demand is gradually shrinking, and the current weak pattern of supply and demand continues, and traders are mainly operating on inventory reduction and shipment to avoid the risk of accumulation before the Spring Festival. There is no significant change in the domestic magnesium alloy market today. So far this week, magnesium alloy market prices continue to operate steadily. Both the supply and demand sides should step by step and respond rationally to the market. It is understood that the mainstream factory price of magnesium alloy ingot in Shanxi is 17500-17700 yuan/ton, the mainstream factory price in Anhui is 17700-17900 yuan/ton, and the mainstream factory price in Guangzhou is 17900-18100 yuan/ton.

In general, the recent increase in production in the ferrosilicon market, the pan oscillating operation, the incremental space for market demand is very limited, the spot market due to not much inventory, some manufacturers are reluctant to sell strong sentiment, the recent ferrosilicon price is strong, the weak balance between supply and demand continues, waiting for steel pricing guidance.