Monthly Report of Ferrosilicon Market in May, 2022

  • Thursday, June 2, 2022
  • Source:ferro-alloys.com

  • Keywords:Ferrosilicon futures, Ferrosilicon supply, Ferrosilicon demand, steel market, magnesium market
[Fellow]In this month, the ferrosilicon market lacked favorable factors on the whole, and the spot quotation was insufficient of support.

[Ferro-Alloys.com]

[Ferrosilicon Market] In May, ferrosilicon futures fell all the way, and the occasional rebound during the period was a flash in the pan. It finally began to stop falling and rebound in the last few days of the month. The opening price of 2209 main contract of ferrosilicon futures in May was 9904, the highest price was 9984, the lowest price was 8462, the closing price was 9196, the settlement price was 9222, the trading volume was 3700133, and the position was 135622, down 7.56%.
 
In this month, the ferrosilicon market lacked favorable factors on the whole, and the spot quotation was insufficient of support. The price of steel tender decreased rapidly from about 10500 RMB/MT to about 9100 RMB/MT in May; The transaction especially at high prices was difficult. There were not many downstream orders, and they were mainly in a wait-and-see mood; Recently, the manufacturers have been highly motivated in production, the operating rate and daily average output have remained stable, and their confidence was generally poor. It was not until late-May that the ferrosilicon market, which had been depressed for many days, finally ushered the good news of price adjustment at the cost side, which boosted the market sentiment. The futures market was consolidated and slightly recovered, and some spot prices were slightly increased; At the end of the month, a new round of steel tender was launched. Many steel mills began to enter the market for procurement, and the demand was released. Although the price fell sharply month on month, it rose slightly compared with that in late May, waiting for the pricing of representative steel mills. The short-term market would be mainly stable.
 
Tender Information – June, 2022
 

Commodity

Steel Mills

Price

(RMB/T)

Change vs. Last Month

(RMB/T)

Volume & change vs. last month

(Tons)

FeSi75-B

ZENITH

9200

-1300

1300 tons (-1200 tons)

FeSi75-B

KISC

/

/

FeSi72Al1.5 1300 tons

FeSi75-B

Xiangtan Iron & Steel

9300

-1000

1200 tons (-700 tons)

FeSi75-B

Nanjing Iron and Steel

9200

/

1000 tons

FeSi75-B

KISC

9290/9360

 

FeSi72Al1.5 1000 tons
 
Below are ferrosilicon futures main contract daily specific performances:
 

Date

Opening price

Highest price

Lowest price

Closing price

Settlement price

Trading volume

Positions

Range

5.5

9904

9984

9616

9750

9770

209993

130584

-1.99%

5.6

9608

9610

9224

9240

9460

236874

146596

-5.42%

5.9

9200

9238

9018

9144

9126

206102

138883

-3.34%

5.10

8970

8970

8680

8730

8814

226033

140601

-4.34%

5.11

8712

8980

8710

8820

8858

176326

142035

0.07%

5.12

8940

8982

8580

8604

8764

216241

152909

-2.87%

5.13

8700

8884

8656

8700

8764

232918

156512

-0.73%

5.16

8772

8866

8740

8842

8806

181005

151041

0.89%

5.17

8898

9112

8858

8962

8988

215027

149569

1.77%

5.18

8922

8922

8682

8698

8792

175855

154782

-3.23%

5.19

8530

8794

8462

8776

8670

187205

158499

-0.18%

5.20

8860

8900

8766

8820

8832

163007

144294

1.73%

5.23

8920

8980

8740

8772

8868

198568

156074

-0.68%

5.24

8772

8992

8772

8816

8870

183816

144523

-0.59%

5.25

8886

8936

8710

8852

8842

168445

141601

-0.20%

5.26

8800

8892

8666

8718

8772

175263

151621

-1.40%

5.27

8860

9034

8840

8940

8934

213774

142263

1.92%

5.30

9070

9176

9002

9118

9096

177888

140881

2.06%

5.31

9210

9288

9156

9196

9222

155793

135622

1.10%
 
 
 
[Ferrosilicon Exports] According to data of China Customs, in April 2022, China exported 75487.143 tons of ferrosilicon (containing by weight more than 55% of silicon), with a year-on-year increase of 62.84% and a month on month decrease of 1.01% (46356.934 tons in April 2021 and 76259.419 tons in March 2022). In April 2022, China exported 2460.8 tons of ferrosilicon (containing by weight ≤ 55% of silicon), an increase of 28.29% year-on-year and 27.03% month on month. From January to April 2022, China exported 264499.25 tons of ferrosilicon (containing by weight more than 55% of silicon), a year-on-year increase of 94.01%. From January to April 2022, China exported 7735.506 tons of ferrosilicon (containing by weight ≤ 55% of silicon), a year-on-year decrease of 1.81%.
 
[Steel Market] In May, the steel market performance was generally lower than expected, and the steel price generally fell. According to the data released by the National Bureau of Statistics, production and demand recovered at both ends in May, the manufacturing PMI rebounded to 49.6%, the new order index and the market demand rebounded; The price index continued to fall, and the ferrous metal smelting and rolling processing, non-ferrous metal smelting and rolling processing, metal products and other industries were lower than 45.0%. However, with the gradual unsealing and resumption of production in many places, the demand for steel was still expected to rebound. However, June to August is the traditional off-season of the steel market, with the temperature rising in the north and the rainy season in the south, which may also bring uncertainty to the market. It is necessary to pay close attention to the recovery of demand.
 
[Magnesium Market] In May, the domestic metal magnesium market was affected by poor demand and entered the downward channel. The magnesium price fell from 37000 RMB/MT at the beginning of the month to about 28500 RMB/MT at the end of the month. During this period, although the news that Shaanxi region held a meeting related to the semi-coke industry from May 11 to 12 was encouraging, the decline stopped and rebounded briefly, but the semi-coke rectification plan has not yet been fully released. The operation of both the supplier and the demander was still cautious. Under the pattern of supply exceeding demand, the magnesium market was under pressure. The willingness of the factory to continue to reduce price was not strong, it was reported that price stabilization measures had been taken. However, whether magnesium prices can be stabilized depends on downstream follow-up and transaction conditions.

 

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  • [Editor:kangmingfei]

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