[Steel Tender] HBIS Group ferrosilicon tender price in August was 5880 yuan per ton (down 220 yuan per ton month on month), and the purchase volume was 2335 tons (increasing 239 tons on a month on month basis). Jiangsu Shagang Group ferrosilicon tender price in August was set at 5880 yuan per ton, while CITIC Pacific set the price at 5900 yuan per ton, down 170 yuan per ton month on month. It is expected that the next bidding price will further decline, and the situation is not very optimistic.
[Raw Material Market] according to market news, the electricity cost in Inner Mongolia may face a slight increase of 1 cent; in addition, the semi-coke price rose slightly. At the same time, transportation costs also increased. It’s calculated that the smelting cost of ferrosilicon is expected to increase by more than 100 yuan per ton.
[Spot Market] This month, the ferrosilicon market has been running steadily and weakly, and the operating rate has continued to rise slightly. Some manufacturers have small-scale spot stocks. Under the influence of various factors, including steel bidding price falling, cost rising, weak futures market and few actual transactions, the ferrosilicon market is pessimistic and the price continues to decline slightly. At present, the ex-factory quotation of 72# ferrosilicon standard block in Ningxia is 5450-5550 yuan per ton; in Shaanxi area, the quotation of 72# ferrosilicon natural block is about 5250 yuan per ton, and that of 75# ferrosilicon is about 5600 yuan per ton.
[Ferrosilicon Output] According to statistics, from January to June 2020, China's ferrosilicon output is about 2.484 million tons, which is slightly lower than that of 2.662 million tons in the same period last year. The yield distribution of each region is as follows:
[Ferrosilicon Exports] The overall downturn of the export market continued. According to the statistics of the China Customs, in June 2020, China's export of ferrosilicon (> 55%) was 19694.647 tons, a month on month decrease of 29.11%, and a year-on-year decrease of 24.95%. In June, the export of ferrosilicon (≤ 55%) was 1312.8 tons, with a month on month increase of 9.08% and a year-on-year decrease of 41.67%. From January to June, China exported 164391.806 tons of ferrosilicon (> 55%), a year-on-year decrease of 24.66% and the export of ferrosilicon (silicon content ≤ 55%) was 9916.575 tons, with a year-on-year decrease of 41.11%.
[Ferrosilicon Futures 2009 Contract]
[Steel Market] The operation of the steel industry in the first half of 2020 of the Ministry of Industry and Information Technology shows that in June, the output of crude steel and steel products in China were 91.58 million tons and 115.85 million tons, respectively, with a year-on-year increase of 4.5% and 7.5%; from January to June, the output of crude steel and steel was 499 million tons and 606 million tons, respectively, with a year-on-year increase of 1.4% and 2.7%. After the sales volume of rebar reached a record high in the second quarter, the recent high temperature and rain weather led to the suspension of many projects and the steel market demand weakened. However, with the end of the rainy season, the demand and the steel mill operating rate rebounded. Under the influence of high iron ore prices, the rebar prices are expected to enter a consolidation state, which is easy to rise but difficult to fall.
[Metal Magnesium Market] At present, the magnesium price is low, and the overall transaction is not optimistic. The current cash quotation including tax of 99.9% magnesium ingots in fugu area was around 12900 yuan per ton. However, in the last week of this month, some factories in Shenfu area began to stop production in summer, which would help to boost market confidence.