Market news (data from Ferroalloy Online) : ① A large steel group in Hebei announced that the price of silicon manganese in May was 7150 yuan/ton, up 50 yuan/ton from the inquiry, and down 150 yuan/ton from the price in April. Purchased 20,800 tons of silicon manganese alloy, an increase of 2,700 tons from April. ② On the 16th, the price of silicon manganese 6517# in Ningxia and Inner Mongolia is 6,750-6,850 yuan/ton, down by 50 yuan; Guizhou, Guangxi quotation 6900-6950 yuan/ton, temporarily stable. (Cash ex-factory offer, including tax, yuan/ton). ③ 16th 72# ferrosilicon: Anyang 6900-7000 (cash tax exclusive), Shaanxi 7100-7200, Ningxia 7100-7200, Qinghai 7100-7200, Gansu 7100-7200, Inner Mongolia 7150-7200 (cash tax inclusive natural block factory, yuan/ton). ④ 16th 75# ferrosilicon: Shaanxi 7800-7900, Ningxia 7800-7900, Qinghai 7900-7950, Gansu 7800-7850, Inner Mongolia 7800-7900 (cash including tax natural block factory, yuan/ton); FOB Ferrosilicon: 72#1400-1430, 75#1510-1540 (US $/ ton, tax included).
Early comment: 16 days double silicon disk concussion down, contract between far month decline is greater than the near month, manganese silicon decline is greater than iron silicon. The overall cost line of double silicon is stable, the spot of ferrosilicon is down slightly, the profit of producing area is still greater than that of ferrosilicon, and some high-cost ferrosilicon manufacturers in Ningxia region maintain break-even or even a small loss. From the low cost range of Ningxia region, the cost support position of ferrosilicon pan surface warehouse receipt is between 7200-7300 yuan/ton, and the cost support position of manganese silicon pan surface warehouse receipt is between 6500-6600 yuan/ton. The current black terminal demand is still weak, the industrial chain profit is in the compression channel, and the double silicon spot may maintain the low profit range. And silicon manganese spot profit still exists further compression space, in addition to the recent months, far months difficult to say cost support. From January to April, the increase of crude steel is 14.52 million tons compared with last year. Under the expectation that the annual increase of crude steel is not increased, there is pressure to reduce the late crude steel. The demand of double silicon steel plant is weak in the medium and long term, and the demand of ferrosilicon metal magnesium is still weak. The supply and demand of silicon manganese is in a tight equilibrium state at the stage, and the supply and demand of ferrosilicon is even in a tight pattern. However, the delivery inventory of ferrosilicon is high, the inventory of silicon manganese is concentrated in the manufacturer's end and there is still room for profit compression. If there is no further production restriction in the main production area of double silicon, the disk cannot be stabilized temporarily.
