[Ferro-Alloys.com] Now Chinese domestic ferrosilicon market price increased quickly, ferrosilicon 75# price up from RMB5450/MT to RMB5650/MT factory tax accepted, and the price increased range was 4%.
Mr.Qi Biao, sales general manager of Erdos Power Metallurgy Group Co., Ltd, as the keynote speaker in the 14th China Ferro-Alloys International Conference said, now the capacity of ferrosilicon in China was 7.8 million tones, and the production of ferrosilicon was 4.25 million tones in 2016. In the second half of year 2016, because of the raw material silicon, semi-coke coal and transport price up affecting the price of ferrosilicon
From July to October, the price increased several times, in the whole year, ferrosilicon 72# price changed from RMB3900/MT lowest to RMB5950/MT highest, and ferrosilicon 75# price changed from RMB4200/MT lowest to RMB6100/MT highest. And he also said, in the first quarter of 2017, the ferrosilicon price changed again and in the first two month, steel mills demand down and the rate of operation lower and lower, especially in Ningxia province, and the total operating plants only more ten and the stopped plants loss more and lack of confidence to ferrosilicon market, while some plants changed to produce silicon metal and high silicon products in Qinghai and Ningxia provinces, the price down in the first two month, while the price rebounded in 17th, March， because of spots down and nervous, many plants has no inventories, the market can to match with the demand, so the price up again, ferrosilicon 72# was RMB5700/MT, ferrosilicon 75# was rmb5900/MT, while the steel prices also changed quickly, iron ore price down though the production of the four tycoon miners increased in Q1, some Chinese steel mills have used scrap smelting to produce and lead to the demand of iron ore down, and some research agency anticipated that the price of iron ore was USD53/MT in 2017, so the price down absolutely.
In April and May, ferrosilicon market changed up and down and the range was RMB200/MT, and in 19thMay, Chinese domestic ferrosilicon market price up again and ferrosilicon 72# price was RMB5400/MT-RMB5500/MT, ferrosilicon 75# price was RMB5600/MT-RMB5700/MT, some ferrosilicon plants now inventories not enough and the bill has arranged to June, the dealt become more and the price of ferrosilicon up clearly.
In recent years, ferrosilicon plants do future and spot now, and sometime both of the price up and under the profit down in spots, some plants changed to the new way, and this will bring the plants developing better. Now , the main ferrosilicon plants are in the advantages of coal, resource and electricity provinces, from the small furnaces to big industries with big capacity,
Ferrosilicon main used in steel mills and magnesium metal plants, now Chinese policy has cut capacity to maintain a good market environment and optimizing the industrial structure, in recent years, China crude steel output down and so the demand of ferroalloys decline. While the output of magnesium metal increased in recent years, in conclusion , ferrosilicon demand changed.
Analysis of ferrosilicon chain, the market restricted and influenced each other, now Chinese domestic ferrosilicon still up under the market status in short time, and ferrosilicon plants is less than steel mills and traders, though the advantages of Chinese ferrosilicon exported are not competitive, China still exported ferrosilicon because of the demand in abroad, so we anticipate the volume of ferrosilicon exported will increase in 2017.