Products Description
Looking back at May, the supply and demand of ferrosilicon fundamentals were weak, and there was no significant contradiction in the industry. On the supply side, with the improvement of production profits on a month on month basis, production increased by 70000 tons. Ningxia, Qinghai, and Shaanxi production areas experienced a significant resumption of production, with a monthly supply of 450000 tons. On the demand side, the recovery of molten iron production has led to a rebound in crude steel production, driving the consumption of ferrosilicon; The profit of stainless steel has also improved month on month, leading to an increase in production and an increase in consumption of ferrosilicon;
The downstream demand for metallic magnesium has not shown signs of improvement, with average production performance and weak demand for ferrosilicon; The price difference between domestic and international exports has not opened up, and there is limited demand from Japan, South Korea, Southeast Asia, and other countries. The demand is expected to increase by 20000 tons month on month to 470000 tons.
In summary, the inventory of ferrosilicon decreased slightly in May, and the fundamentals were relatively healthy. Prices also continued to recover from the bottom up.
June Market
Looking ahead to June, high profits may bring expectations of sustained supply side volume growth, but the overall demand side is expected to remain stable. With the expectation of stable supply and demand, there are doubts about inventory reduction, and the fundamentals of ferrosilicon will weaken month on month. From the supply side perspective, the spot and market profits in Inner Mongolia production area are both about 800 yuan/ton, while the spot and market profits in Ningxia production area are about 600 yuan/ton. High profits are expected to continue to stimulate the enthusiasm of factories to resume production and increase production load. The profits of other production areas are also expanding month on month, with some factories converting other silicon categories to 72 silicon iron. It is expected that silicon iron production will continue to rise.
On the demand side, as the country enters a period of high temperatures, there is an expectation of a weakening in steel apparent consumption, while production or stages remain stable, with no incremental growth in demand for ferrosilicon; It is also difficult for non steel demand to exceed expectations, with metal magnesium profits under pressure and difficult to significantly increase production. Exports are expected to operate steadily due to the lack of significant improvement in overseas demand. Overall, the fundamentals of ferrosilicon in June will weaken compared to May, and there is a possibility of a slight accumulation.
contact
ZHENAN INTERNATIOANL CO., LTD
Tell: +8615896822096 (WhatsApp)
Email: info@zaferroalloy.com
Website: www.metal-alloy.com
Address: Huafu Office Building, Anyang, Henan province, China.
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