Due to the situation in the Red Sea, the shipping operations of many shipping companies around the world have avoided the Red Sea and instead detoured around the Cape of Good Hope in Africa. The number of transportation days has increased, container freight has increased significantly, which has affected oil and gas transportation and dry bulk trade, and the logistics costs of steel and black series commodities have increased. , black iron ore has increased significantly, driving up the price of ferrosilicon.
The mainstream quotations of ferrosilicon manufacturers are 72#6550-6650, 75#7000-7200 yuan/ton in cash for natural blocks, standard blocks 72#6700 yuan/ton, and Shaanxi bulk 72#6350-6400 yuan/ton. Some factories are under inventory pressure. Make the price and ship the goods.
Steel mills: Yesterday, the price of steel presented in Qujing, Yunnan was 7,230 yuan/ton in cash.
In terms of metal magnesium: the magnesium market is operating stably but weakening. The quotation price of magnesium plants is firm at 20,400-20,500 yuan. However, downstream prices are obviously suppressed. Stocking on demand has become the norm. The demand boost is slightly weak, and the market expectations are mostly weak.
China’s Ferrosilicon Export Tariffs in 2024
The Tariff Commission of the State Council released the 2024 tariff adjustment plan. Starting from January 1, 2024, the import and export tariffs on some commodities will be adjusted, among which the export tariff on ferrosilicon remains unchanged at 25%.
The Raw Materials of Ferro Silicon
Raw material prices are relatively stable. The factory price of Qinghai and Ningxia silica is 200-250 yuan/ton. Shenfu orchid charcoal raw materials leave the factory at 1,080-1,160 yuan/ton, with little change. The price of 70# oxide iron sheet in Shijiazhuang, Hebei is 980-1010 yuan/ton, which is temporarily stable.
The Outlook of Ferro Silicon Price at the Beginning of 2024
The ferro silicon price is likely to go up.
The price of ferrosilicon raw materials is stable and is expected to have little impact on the price of ferrosilicon in early 2024.
- Output is expected to decline, with ferrosilicon producers generally shutting down production for about 20 days due to the Chinese Lunar New Year. The 6.2-magnitude earthquake in Qinghai, Gansu Province destroyed local water, electricity, transportation, and other infrastructure. Gansu and Qinghai are both important ferrosilicon production areas in China. With priority being given to protecting people’s livelihoods, ferrosilicon production will be significantly reduced.
- Sea freight rates have risen sharply, as tensions in the Red Sea require ships to detour around the Cape of Good Hope.
- In summary, at the beginning of 2024, the price of ferrosilicon is expected to rise steadily.
The latest statistics show that in November, there were 79 ferrosilicon-producing companies in the country, with 276 submersible furnaces in production. The overall average operating rate of ferrosilicon in November was 59.93%, down 0.99% from October. The output is expected to be 492,800 tons, an increase of 15,600 tons from October, and an increase of 22,000 tons from 470,800 tons in November 2022. The cumulative output from January to November 2023 was 5.0572 million tons, a decrease of 367,700 tons compared with the same period in 2022, and a year-on-year decrease of 6.78%.
Regarding the start of construction this month: One 45,000kva ferrosilicon furnace replaced by the Ordos factory in Inner Mongolia was put into production in the first ten days of this month and one in the second half of this month. Zhengneng Chemical resumed production of one unit in the middle of the year. Gansu Tianzhu Chuangyi has resumed production of one unit in the second half of the year, Longnan Wanli has resumed production of one unit, Juye Qinghai Zhongli inspected 1 unit at the beginning of the month, Huadian inspected 1 unit at the middle of the year and added 1 unit at the end of the year, Shouheng overhauled 1 unit at the end of the month, and Shuohua switched to peak production in the middle of the year. In Ningxia, four furnaces were replaced with equipment in turn in the first ten days of Sanyuan, and normal production resumed in the middle of the year. Two furnaces that Maoye had inspected last month resumed production, and two furnaces in Xinhua were stopped in the first ten days of the year. One additional unit was put into operation in Jingfu, Shaanxi Province in the middle of the month, one unit in Sanjiang resumed production at the beginning of the month for maintenance, one unit in Yabo resumed production at the beginning of the month, and one unit in Xintian resumed production at the beginning of the month. Sichuan Yuefa stopped one unit in the middle and late period, and Yuexing stopped production at the beginning of the month.
Ferro Silicon Import and Export Market
According to customs data, China’s export volume of ferrosilicon with silicon content greater than 55% in October 2023 was 27954.535 tons, an increase of 1769.242 tons from September and a month-on-month increase of 6.76%. Compared with 36587.582 tons in the same period last year, it decreased by 8633.047 tons, a year-on-year decrease of 23.6%. The total exports from January to October 2023 were 324,100 tons, a decrease of 253,900 tons compared with the same period last year, a year-on-year decrease of 43.93%.
In October 2023, China’s export volume of ferrosilicon with silicon content ≤55% was 1923.32 tons, a decrease of 438.812 tons from September and a month-on-month decrease of 18.58%. Compared with 2407.1 tons in the same period last year, it decreased by 483.78 tons, a year-on-year decrease of 20.1%.
Import: According to customs data, China’s import volume of ferrosilicon with silicon content greater than 55% in October 2023 was 8318.148 tons, an increase of 4372.302 tons from September and a year-on-year increase of 110.81%. The main importing countries are: North Korea 7262.148, Russia 942 (tons)