[Ferro-Alloys.com]

[Ferrosilicon Market] The domestic ferrosilicon market continued to operate weakly with cost downwards, and Futures fell broke expectations. Steel tender price in July decreased sharply and steel tender in August put off, poor demand and difficult transactions driving spot prices falling and falling. Plants were facing inventory pressure and deep losses. Many plants in Gansu, Ningxia, Qinghai and Shaanxi province began to cut production since July,  it’s learned that almost all the submerged arc furnaces have been shutdown and it’s calculated that it would influence the monthly production by about 120 thousand tons and the production in July was expected to be around 480 thousand tons. By comparing the monthly production of around 500-550 thousand tons from January to June, the supply side in July would reduce apparently, the contradiction between supply and demand can be eased in stages, the Futures rebounded slightly from the third week of July, reducing the impact on the spot market, but it was still inferior to the weak downstream demand, and it was difficult to completely reverse the situation in the short term. Pay attention to the trend of Futures and the progress of a new round of steel tender.

[Ferrosilicon Exports] According to data of China Customs, in June 2022, China exported 57566.397 tons of ferrosilicon (containing by weight more than 55% of silicon), a month on month decrease of 24.76% and a year-on-year increase of 37.43% (76510.92 tons were exported in May 2022; 41887.557 tons were exported in June 2021). From January to June 2022, China exported 398576.567 tons of ferrosilicon (containing by weight more than 55% of silicon), an increase of 78.41% year-on-year. The export volumes in June was lower than that in April and May, but it was still relatively high overall, which was one of the strong supports for the operation of ferrosilicon market.

In July, the opening price of 2209 contract was 8,258, the highest price was 8,360, the lowest price was 7,070, the closing price was 7,986, the settlement price was 7,976, the trading volume was 3,641,937, and the position was 127,047, a decrease of 5.18%.

• [Editor:kangmingfei]