Ferrosilicon Policy Wait-and-see Intensification, Manganese Silicon Cost Support Is Significant

Ferrosilicon and manganese silicon intra-day high oscillations. According to Mysteel, Qinghai Province, the main production area of ferrosilicon, has carried out the power load management plan to meet the kurtosis summer in 2023. The energy-consuming industries such as ferroalloy are facing potential supply contraction pressure under different response levels, and the potential supply disturbance has pushed the plate price to strengthen. From the perspective of industrial performance, the current ferrosilicon and manganese silicon face direct demand driven by the high output of downstream steel mills, and the negative industrial feedback pressure caused by the marginal peak of black terminal demand has not been fully transmitted to the upstream charge link, while the early decline of double silicon leads to some high-cost areas facing the pressure of industrial losses. Therefore, influenced by direct demand and cost valuation, the dual-silicon price stabilized in stages. From the perspective of expectation, the demand for silicon is still likely to weaken further with the promotion of negative feedback of the industrial chain. The continuous inventory accumulation in the peak season of silicon also proves the wide supply and demand pattern of the industry. In the context of its own shortfall, silicon may rebound in the short term, but the overall sustained upward drive may be insufficient, so there is still room to wait and see for the implementation of supply policies.