At present, the centre of gravity of ferrosilicon prices maintains a low level of oscillation. High production on the supply side and weak demand side are the main conflicts in the current market. Considering the current profitability situation, there is limited scope for a significant drop in production. Demand side of the steel industry on the demand for ferrosilicon is difficult to have significant growth. The continued accumulation of inventories also exacerbates the downside of the market. Although the cost side has some support, but in the case of supply and demand contradictions have not yet eased, the overall valuation of ferrosilicon lacks upward momentum, the price centre of gravity to maintain a low level of oscillation.
