Weak operation of ferrosilicon continues to reduce production

Ferrosilicon futures low open shock, manufacturers quoted at 72 7700-7900, 75 8600-8700 yuan / ton cash natural block factory, the futures company shipped Zhongwei library 08-100. After the manufacturer feedback steel bidding is finalized, the downstream manufacturers push the price backwards according to the steel bidding price, the manufacturer's high quotation is difficult to deal, and the low quotation will lose money and face an embarrassing situation.

Steel demand fell, steel mills cut production, resulting in a decline in ferrosilicon demand, prices fell, ferrosilicon also passively reduced production. Foreign level: ferrosilicon exports due to the Russian-Ukrainian war has a wave of significant increase, but foreign due to the rise in energy production costs increased enterprise production cuts, the past one or two months domestic export manufacturers said that the transaction decreased. The root cause of the decline in the price of ferrosilicon manufacturers is the decline in demand, but the reduction in production is to match the reduction of demand, and has not changed the current supply and demand situation.

The price of Lantan has not been significantly adjusted, the price of electricity has not been adjusted, and the cost of ferrosilicon is still supported. It will take time for the demand side to recover, and the supply side of ferrosilicon will continue to reduce production. Steel moves are being promoted, most of the northern steel mills will refer to the river steel price pricing, which will lead to the manufacturer's high quotation downstream acceptance is low, the market is expected to maintain a weak and stable trend in the short term, pay attention to the follow-up transaction situation and start of change.