Futures end: the main 07 contract of ferrosilicon closed 7538, 1.26%, up 94, a day to reduce 13783 hands; Spot end: ferrosilicon manufacturers profit low range, weak demand, the main production area 72 ferrosilicon natural block cash including tax factory 7100-7150 yuan/ton, 75 ferrosilicon 7800 yuan/ton or so.
Supply: There is no change in the cost of blue carbon raw materials. This week, the average cost of ferrosilicon is maintained at 7200 yuan/ton. Manufacturers in various production areas actually have varying degrees of losses. Under the constraint of cost, the factory is reluctant to sell at a low price, and the manufacturers are under great pressure. Some choose not to quote, and basically produce according to orders. According to Mysteel research, Ningxia Ruizilian stopped production of 4 ferrosilicon furnace at 5 PM today, affecting the daily output of 400 tons. Now it is operating 2 ferrosilicon furnace, and the daily output of ferrosilicon cycle is expected to drop to a new low.
Downstream: downstream demand slowdown, steel table needs to weaken, superposition steel profits weak, will have a certain degree of negative for the charge, silicon iron weekly demand decreased quarter on quarter, traders purchase to just need, the market for raw material procurement is more cautious, to warehouse will take a certain amount of time. Magnesium inventories are high and demand continues to be weak. This round of magnesium plant production has been shut down, and the price of magnesium ingot has not been lifted as a result. At present, the offer is more chaotic, the overall transaction low, 99.90% magnesium ingot Shaanxi mainstream factory cash quotation including tax 26000-27000 yuan/ton.
In general, the basic sentiment of the spot market of ferrosilicon was mobilized by the news of production cuts, slightly improved, but the current market supply and demand are weak, all parties are intertwined, the change of the demand side will be the main factor affecting the price trend. Short - term attention to the disk and market supply and demand, is expected to be in a weak stable shock state, slow to warehouse.
