Today the main 07 contract of ferrosilicon close 7258, range -1.28%, down 94; Main production areas 72 iron silicon natural block cash including tax factory 7000-7100 yuan/ton, 75 iron silicon about 7700 yuan/ton. Anyang trade market 72 iron silicon natural block price excluding tax 6800 yuan/ton, 75 iron silicon natural block excluding tax around 7400 yuan/ton.
This week the iron silicon price shock fell, but 75 iron silicon compared to 72 performance is still strong, the basis continues to shrink. In the context of coal prices continue to decline, the cost of ferrosilicon continues to drag; Carbon market stability in weak operation, the mainstream price of small and medium-sized materials in the divine wood market 1220-1320 yuan/ton. If the price continues to fall below the cost line, do not exclude the manufacturer of new furnace maintenance.
On the demand side, near the end of the month, the basic pricing of the steel supply in May was completed, and the price also went down. The latest Monday, Minyuan cash in Henan, including tax package, reached 7350 yuan/ton, and the consumption decreased significantly. Traders have individual bottom-fishing purchasing phenomenon, but the overall mood pessimistic, back-to-back operations. Disk down, the current company shipment is more smooth, point price than the manufacturer price has an advantage, Ningxia from 07-220/230. The export situation is still not good, the bidding phenomenon is obvious, the ferrosilicon fundamentals are in a state of supply is less than demand. Magnesium market continued weak operation, magnesium ingot quotation small Yin fell downstream demand weak, the market to just need to purchase, 99.90% of Shaanxi mainstream factory cash including tax 24500 yuan/ton.
In summary, under the background of loose market resources of ferrosilicon, poor downstream demand and high social inventory, the probability of weakening of ferrosilicon price is relatively large in the short term
