[Ferro-Alloys.com] Since February, 2020, the domestic ferrosilicon market has been like on a roller coaster. First, the price in February rose sharply but briefly, and then, the price fell to the cost line in March and the inventory was once more than 400 thousand tons. Under the combined effect of production resumption and downstream demand recovery, the ferrosilicon price began to rise gradually in late April.
At present, the supply of ferrosilicon market is more than the demand, and the spot is short. As Ferroalloy.com known, orders of many manufacturers have arranged till June. Continuous news of resumption of production in the main production area is coming out, and the manufacturer's quotation is firm. The ex-factory quotation of 72# ferrosilicon standard blocks in a large factory in the main production area has risen to about 5600-5700 yuan per ton, and the market is hopeful to get warm again. Of course, we also need to pay close attention to the changes in supply and demand, the impact of cost and the progress of steel bidding.
Last week, Xiangtan Iron and Steel Co., Ltd. of Hunan Province took the lead in announcing the bidding price of ferrosilicon in June of 5930 yuan per ton, a month on month increase of 290 yuan per ton, and the bidding quantity of 1800 tons. It is expected that in June, the price of steel bidding will continue to rise to about 5900-6000 yuan per ton. In addition, a new round of steel bidding will release the demand for ferrosilicon once again, which will be heplful for the ferrosilicon market recovery.
Here is ferrosilicon futures main contract 2009 specific performances on May 25:
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