Recent Developments in the Ferrosilicon Industry

On December 15, the market quotation of ferrosilicon (brand: FeSi75～B; particle size grade/mm: natural block) in Ningxia was around 6,600-6,700 CNY/ton, and the average market price was 6,678 CNY/ton, down 0.64%.

The ferrosilicon market was temporarily stable last week. In terms of raw materials, Lantan made up for the decline, easing cost pressure on manufacturers, while spot support weakened. On the supply side, market transactions are weak, quotations are loose, and manufacturers are losing profits. Some silicon companies have prepared raw material reserves in advance for the resumption of magnesium plant production. However, the progress of downstream production resumption has been hindered, procurement has been slow, market wait-and-see has increased, and silicon companies have started to decline. In terms of demand, the performance of mainstream steel recruitment has declined month-on-month, which is generally in line with market expectations. Steel mills maintain their willingness to purchase at lower prices, and practitioners are relatively pessimistic about the market outlook. Looking at this week: In terms of costs, the profits of Ningxia manufacturers have improved significantly after the reduction of Lanzhou carbon. Except for some companies in Qinghai that were inspected by the environmental protection team and had to avoid peak production or stop production, production in other regions remained stable, with overall output reduced, and overlay transportation was affected. As a result, supply is tight, futures prices are weak, and manufacturers are reluctant to sell at low prices.

Generally speaking, ferrosilicon manufacturers have held up their prices, but due to the rain and snow, the company's shipments have been hampered. To a certain extent, terminal companies are forced to be less enthusiastic about stocking up. The spot market is facing the reality of declining trading volume, which inhibits price increases. It is expected that the spot price of ferrosilicon may be weak in the short ter