On Wednesday, silicon iron futures prices opened high but closed low, with the main contract closing at 6,008 yuan/ton, up 0.77% from the previous day, and the main contract's open interest remaining largely unchanged from the previous day. The consolidated price of 72-grade silicon iron in various regions was 5,650-5,700 yuan/ton, with Inner Mongolia raising its price by 100 yuan/ton and Ningxia raising its price by 150 yuan/ton from the previous day. Yesterday, the black metal sector overall remained strong, with some varieties experiencing minor declines. Silicon iron futures opened higher but closed lower, ultimately ending the day with a slight gain. Market sentiment has been changing rapidly recently. Yesterday, a major meeting announcement was released, mentioning "regulating unfair competition among enterprises in accordance with laws and regulations, and advancing capacity management in key industries." Monitor the implementation of subsequent measures. From a fundamental perspective, silicon iron production profits improved month-on-month in July, with Inner Mongolia's silicon iron output and operating rates both increasing month-on-month. On the demand side, the weekly demand for silicon iron from sample enterprises also increased month-on-month, and steel mills remained active in purchasing as the month came to a close. On the cost side, the price of coke fines increased by 25 yuan per ton to 565 yuan per ton, providing some support to costs. Overall, the recent fundamentals have limited marginal drivers, and market sentiment changes should be monitored. It is expected that silicon iron prices will continue to fluctuate widely in the short term.
