Futures end: the main silicon 06 contract closed 7310, range -0.87%, down 64, a day to reduce 7811 hands; Spot end: iron silicon demand pressure, industrial profit pressure intensification, main production areas 72 iron silicon natural block price about 7300 yuan/ton, 75 iron silicon price 8000-8100 yuan/ton.
On the supply side: there was a slight downward trend in the start of production, and the output fell back. Some manufacturers avoided peak and stopped the furnace to reduce production, and some manufacturers repaired and resumed production to protect the earlier order. Disk volatility down, spot transaction price dark drop obvious, manufacturers cost pressure is larger, some manufacturers have suffered losses, market sentiment is not good.
Downstream: according to Mysteel research, steel production scope expanded. It is estimated that the output of molten iron from blast furnaces in May is about 2.38 million tons/day under the pressure of profit loss without considering the policy production limit. Steel mill profit weak, control coarse steel policy will continue to reduce the demand for iron silicon slightly. Some steel mills opened the bidding in May, but the price is expected to be lower, May ferrosilicon FeSi75-B south bidding price around 7700-7800 yuan/ton, traders weaker enthusiasm for spot procurement, more inclined to back-to-back operation.
In general, although there is a reduction in supply, but the steel mill gradually voluntary production reduction, weak demand under the ferrosilicon is still in the accumulation stage, the overall supply and demand is weak. Short - term attention to the disk and the latest situation of steel, ferrosilicon market shock is expected to run mainly weak.
