Ferrosilicon prices may have a floor

Today's futures end: the main 10 contract of ferrosilicon closed 6180, a range of -0.32%, down 20, a one-day reduction of 3572 lots; Spot end: iron silicon demand fall, long and short game. The main production areas of iron silicon 72 iron silicon natural block cash including tax factory 6100-6200 yuan/ton, 75 iron silicon price is 6550-6700 yuan/ton. Henan traders market 72 iron silicon natural block excluding tax price of about 5900 yuan/ton, 75 iron silicon natural block excluding tax around 6300-6400 yuan/ton.

Demand for molten iron production has not peaked, there is still room for growth, but the low profit of steel mills makes the increase of molten iron production limited space, inhibit the demand for raw materials; The increase in steel demand is limited, the loss pressure of steel mills is not reduced, steel mills still need to strictly control costs and reduce the speed of procurement. Although the bidding of large-scale steel mills in September entered the pricing part, in fact, the market was generally traded. The latest steel offer: on September 3, the bidding price of ferrosilicon in a steel mill in Jiangsu was 6620 yuan/ton, the quantity was 900 tons, and the acceptance included tax to the factory. The bidding price of ferrosilicon in a steel mill in Yunnan is 6610 yuan/ton, the quantity is 400 tons, cash including tax to the factory.

Traders continue to ship mainly, under the reality of weak market conditions, traders reduce purchases; Referring to the past months, traders' profit margins are in danger, and the export situation has not yet appeared relevant favorable support, in general, traders are currently cautious operation.

In general, the price is still expected to be stable for the future market of ferrosilicon, the space for rise and fall is relatively limited, the traditional consumption season and the cost of ferrosilicon support, to ensure that the price of ferrosilicon may have a bottom line.