Ferro Silicon Magnesium Price Analysis In 2023 and Outlook In 2024

The Price Analysis of Ferro Silicon Magnesium in 2023

In 2023, the price of rare earth ferro silicon magnesium declined slightly, mainly due to three aspects: shrinking demand, the contradiction between supply and demand, and inventory accumulation.

Ferro Silicon uses Ferro Silicon lump Ferro Silicon powder

In the past few years, the epidemic situation was severe, coupled with the impact of foreign geopolitical conflicts, the domestic and foreign market economy downturn, terminal consumption capacity was weak, and it became more difficult to sell steel and casting materials. The market demand for raw materials such as rare earth ferro silicon magnesium has significantly shrunk.

In addition, in recent years, rare earth silicon has experienced frequent changes in production due to multiple factors such as energy consumption, the epidemic, and the economy. In addition, during the period of falling raw material prices, the market demand and transactions for rare earth ferro silicon magnesium have been insufficient.

Therefore, the price has been declining slightly. In the later period, when the trend of raw materials is strong, rare earth ferro Silicon magnesium prices are stabilizing. The contradiction between supply and demand is constantly changing, resulting in fluctuations in the price of rare earth silicon. Furthermore, the price of rare earth ferrosilicon has dropped significantly in recent years. There are a large number of high-priced spot stocks on the market. The holders are unwilling to sell at low prices. Only some of the funds have been withdrawn from shipments from time to time. The market oversupply still exists and the inventory is difficult to digest. The price boost is weak.

Judging from the output of rare earth ferro silicon magnesium from January to December 2023, January to March is the beginning of the new year, the market replenishment status is positive, factory confidence is strong, and the operating rate is rising steadily; from April to July, the market inventory is relatively saturated, plus Under the restrictions of dual-energy consumption control documents in Inner Mongolia and Ningxia, the start-up output of rare earth silicon plants is at a low level; from August to December, market demand gradually recovered, market inquiry volume increased, new factories were opened, and output also increased relatively.

The Rare Earth Ferro Silicon Magnesium Price Outlook in 2024

Rare earth silicon: It is expected that prices will rise sharply next year or it will be difficult. On the one hand, the operating rate of downstream foundries is low, especially in Hebei and Henan. Due to the pressure of environmental impact assessments, there is no hope for large-scale resumption of foundries, and rare earth silicon shipments are still restricted; on the other hand, the pace of market economic recovery is slow, and the ferroalloy environment In the recession, rare earth silicon transactions continue to be deserted, the contradiction between supply and demand is difficult to alleviate, and there is no favorable support in terms of costs. It is difficult for both supply and demand to see benefits. Generally speaking, the overall rare earth ferrosilicon market is relatively sluggish, with upstream raw materials weakening and downstream demand sluggish. Rare earth ferrosilicon is facing a dilemma and companies are operating under pressure. Therefore, if there is no huge positive support next year, the rare earth silicon market is more likely to maintain stable operation.

Rare earth magnesium: Price growth is expected to be slightly weak next year. The price increase of rare earth magnesium silicon is mainly supported by rising raw material prices and rising downstream demand. From the raw material side, there is currently no obvious benefit and it is difficult to support the long-term stability of rare earth magnesium silicon prices. Judging from the start-up of downstream enterprises, if environmental protection production restrictions are combined with weak demand and other factors in the later period, and the production reduction and shutdown of foundries intensifies, the willingness to purchase auxiliary alloys such as rare earth magnesium may be even lower. We should continue to pay attention to changes in supply and market operating sentiment. The overall upward trend may be difficult, but we do not rule out rebound opportunities amid weakening.

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