virtualroulette| The main contract price of ferrosilicon rose slightly by 1.01%, and the demand side continued to improve: the operating rate of ferrosilicon enterprises increased to 34.30%

News summary

The main contract for ferrosilicon rose 1.1 percent yesterdayvirtualroulette.01%virtualroulette, closed at 7396 yuan/ton, inventories increased, and the price of magnesium metal weakened. The supply-demand relationship has improved, downstream demand has picked up, and ferrosilicon prices are expected to fluctuate, focusing on the performance of the 7300 pressure level.

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[The main contract of ferrosilicon closed up 1.0% yesterdayvirtualroulette.01%] The ferrosilicon futures market showed an upward trend yesterday, with the main contract ending at 7396 yuan/ton, and the number of positions decreasing by 12039 lots.

Yesterday, the ferrosilicon warehouse receipt data was updated simultaneously, and the total number reached 17292, an increase of 400 from the previous trading day. The effective forecast remained at 400, with no change.

In terms of spot prices, the prices in Inner Mongolia and Qinghai are 6850 yuan/ton and 6800 yuan/ton respectively, the prices of qualified bulk ferrosilicon in Henan are 7300 yuan/ton, and the prices in Jiangsu and Tianjin are 7400 yuan/ton and 7300 yuan/ton, showing a weak and stable overall pattern.

The Lanzhou charcoal market remained stable, with the price range of small materials in Shenfu area ranging from 900 to 1,000 yuan/ton. This week, the operating rate of Lantan dropped slightly to 37.69%, the average daily output decreased to 141,000 tons, the inventory dropped by 10,000 tons to 215,000 tons, and the inventory of raw coal decreased by 77,800 tons to 1.2388 million tons.

In terms of production costs, the immediate production cost in Inner Mongolia is 6102 yuan/ton, Qinghai is 6209 yuan/ton, and Ningxia is 6165 yuan/ton, showing the cost difference between regions.

Supply dynamics show that the sample operating rate of 136 independent ferrosilicon enterprises across the country has slightly increased to 34.30%, the average daily output has increased to 14413 tons, and the weekly output has reached 100,900 tons.

On the demand side, demand for ferrosilicon in the five major steel grades increased slightly by 0.97%, reaching 20957 tons. The output of the five major materials was 8.8952 million tons, and the total inventory was 18.1305 million tons, a month-on-month decrease of 715,700 tons.

The magnesium metal market remained weak and stable. The tax-included price for 99.90% magnesium ingots from Shaanxi was 18,500 - 18,600 yuan/ton, and the mainstream transaction price was 18,400 - 18,500 yuan/ton. Shanxi Wenxi followed the adjustment.

Looking forward to the ferrosilicon market, the supply side is growing steadily due to the resumption of production and the improvement of manufacturers 'profits. The demand side is subject to bidding and pricing by HegangvirtualrouletteDue to the positive impact of hot metal output, hot metal output is expected to reach about 2.4 million tons in May, and demand for steelmaking continues to improve. Ferrosilicon export profits have declined due to the impact of rising domestic market prices, so follow-up data performance needs to be paid attention to. The cost-end carbon performance was strong, the price of lump coal rose slightly, the electricity price in the production area was stable, and the overall cost remained unchanged.

Based on the above factors, the supply-demand relationship in the ferrosilicon market has improved. Although downstream sentiment has recovered and trade links have improved, the growth of supply pressure cannot be ignored. It is expected that prices will remain volatile in the short term, with the main contract price range of 6,500 - 7,200 yuan/ton. It is necessary to pay close attention to the pressure performance of 7300 yuan/ton.