Ferrosilicon prices fell below expectations, and manufacturers' losses intensified

Today, ferrosilicon futures fell, and the main contract futures 2507 closed down 1.41%, closing at 5298, down 76.

1. Manufacturers

Shaanxi: The 75 market fell slowly. As soon as the Fugu factory finished maintenance in the early stage, the supply was relatively sufficient. The price of 72 ferrosilicon natural blocks was 5200-5300 yuan/ton, and the price of 75 ferrosilicon natural blocks was 5800-5900 yuan/ton. The price of raw material lignite remained stable. Some coal mines in Shaanxi stopped production, the market supply tightened, the coal price rose, the lignite market continued to be strong, and the ex-factory price of lignite small materials was 575-630 yuan/ton.

Ningxia: The ferrosilicon market was weak, and some manufacturers followed the market to reduce prices and ship goods. After the holiday, the companies that had been overhauled in the early stage had expectations of resuming production. 72 ferrosilicon natural block is 5200-5250 yuan/ton, 72 ferrosilicon standard block is 5300 yuan/ton, and 75 ferrosilicon is 5900 yuan/ton.

Qinghai: The overall ferrosilicon market is weak, demand-side procurement is cautious, and market sentiment is poor. At present, the ferrosilicon market is dominated by fast entry and fast exit, term traders have good transactions, and the circulation of low-priced resources is accelerated. The overall quotation of 72 ferrosilicon natural block is 5250-5300 yuan/ton, and the quotation of 75 ferrosilicon natural block is 5850-5900 yuan/ton.

2. Traders

The supply of Anyang traders is relatively sufficient, the cost and demand performance are poor, and the market sentiment is anxious. The tax-free price of 72 ferrosilicon natural block is about 5100 yuan/ton, and the tax-free price of 75 ferrosilicon natural block is around 5400 yuan/ton.

3. Steel mills

The bidding of steel mills has basically ended, the output of molten iron has slowly declined but is still at a high level, and the bidding demand of steel mills is relatively stable.

4. Outlook on the Future Market

This week, the ferrosilicon market was not affected by the production cuts of large factories. The price and market are in a continuous downward trend. On the one hand, it is due to the expectation of resumption of production in the production areas, and on the other hand, it is considered that June is the trial operation month of the electricity spot market transaction, and there is a possibility of a decline in electricity prices. However, from the perspective of the fundamentals of ferrosilicon, while the bidding demand of steel mills remains stable, the market supply has reached the low level of the first half of the year, and the market contradictions are not sharp enough. In the short term, we need to pay attention to the rhythm of resumption of production after the holiday and the settlement of electricity prices.