ZXferroalloy Eyes Weak Ferro Silicon Prices October 2023

Current Price of Ferrosilicon

In October, ferrosilicon price was significantly down. First, the price of carbon fell, and the cost of ferrosilicon weakened. Second,  the production of ferrosilicon increased in early October. Third is the downstream steel mills to reduce production, steel pricing fell, even if there is Qinghai, Ningxia energy consumption related news, but because there is no specific measures, there is no real impact. In October, ferrosilicon was dominated by negative news, the disk fell, the delivery warehouse supply was affected by low prices, and the quotation of manufacturers was under pressure. At the end of the month, the mainstream market price of 72#6700-6800,75#7400-7500 yuan/ton, down 200-400 yuan/ton from September.

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The Price of Raw Materials of Ferro Silicon Alloy

Qinghai, Ningxia silica factory arrival price 200-250 yuan/ton, the factory transport distance of different prices have a gap. Shenfu LAN carbon small material 1380-1450 yuan/ton at the beginning of the month, 1250-1350 yuan/ton at the end of the month, down 100-130 yuan/ton. Shijiazhuang 70# oxidized iron at the beginning of the month 980-1010 yuan/ton without tickets, at the end of the month maintained at 940-970 yuan/ton, down 40 yuan/ton.

Ferro Silicon Price October, 2023

In October, ferrosilicon showed a downward trend compared with September, and the mainstream market price at the end of the month was 72# 6700-6800,75 #7400-7500 yuan/ton, down 200-400 yuan/ton from September.

Specifically: The resumption of the market after National Day, one is the price of charcoal fell during the holiday, the second is Ningxia, Shaanxi and other places continued to resume production, ferrosilicon production continued to rise, the third is Yunnan, Tangshan and other steel mills issued a reduction in production news, after the holiday, black futures fell, ferrosilicon futures fell for ten days, the plate point price receiving price is lower, low price impact on the market, the factory into the delivery order is difficult, the offer is down, In the middle of the market price fell to 72#6700-6900, 75#7400-7600 yuan/ton of cash natural block factory, down 200-300 yuan/ton before the festival.

A meeting on energy consumption was held in Qinghai in the middle of the year, but there was no actual impact. Ningxia Department of Industry and Information Technology issued a notice to carry out peak production in some key industrial industries in the winter and spring of 2023-2024, and the specific peak file of Zhongwei has not yet been introduced, and the impact is unknown. In the second half of the year, the central finance increased the issuance of one trillion national bonds, the macro policy was favorable, and the black department rebounded as a whole. The second is that the raw material carbon fell again, the cost center of focus moved down slightly, the ferrosilicon futures were still weak, the spot trading was not smooth, the price was slightly loosened, and the market price was 72#6650-6750, 75#7400-7500 yuan/ton in the second half. Lower than the middle of 50-100 yuan/ton.

This month’s output: the latest statistics show that in October the country in the production of ferrosilicon enterprises a total of 82, in the production of mineral heat furnace 273. The total average operating rate of ferrosilicon in October was 60.92%, up 1.77% from September, and the production is expected to be 477,200 tons, an increase of 0.71 million tons from September, and an increase of 10,400 tons from 466,800 tons in October 22. The cumulative output from January to October 2023 was 4.564,400 tons, 389,700 tons less than the same period in 22 years, down 7.87%.

In terms of construction this month: Inner Mongolia Zhengneng Chemical repaired 1 unit in late October. Gansu Juyexing Energy resumed production of 1 unit in the first ten days, and Wenxian Wanli reduced 1 unit. Qinghai Fuxin overhaul 1 and from full load to avoid the peak, Tianjian to avoid the peak, Rongxinli at the end of the month 1 97 silicon to produce ferrosilicon. Ningxia three yuan furnace in turn inspection and installation equipment, production decline this month, Maoye 2 in late maintenance at the end of the month to resume production, big 2 due to line trip temporary maintenance 5-6 days, Hefa early production 1, Yuexin early production 1, Xinhua early production 1, Rui information Union in late maintenance 1. Shaanxi Teda opened 1 additional unit in the first ten days, resumed production at the end of the month, Sanjiang 3 units resumed production after temporary repair in the middle of the middle, Juyuan 1 unit resumed production after repair in the middle of the middle, Qianxin 1 unit resumed production in the middle of the end, Longhua 1 unit resumed production in the middle of the end, and two wings 2 units resumed production at the end of the middle of the repair. Xinjiang electric synthesis resumed production of 1. Sichuan Yuexing plans to stop production at the end of the month, Shanxi to maintain production.

Export market

According to customs data, in September 2023, China’s export volume of ferrosilicon containing more than 55% silicon was 26185.293 tons, a decrease of 1715.219 tons from August, a decrease of 6.15% from the previous month. Compared with 43,248.486 tons in the same period last year, a decrease of 17,063.193 tons, a decrease of 39.45%. The total exports from January to September 2023 were 296,200 tons, a decrease of 245,200 tons compared with the same period last year, a decrease of 45.29%.

In September 2023, China’s export volume of ferrosilicon containing less than 55% silicon was 2362.132 tons, a decrease of 103.868 tons from August, a decrease of 4.21% from the previous month. Compared with the same period last year, 2174.5 tons increased by 187.632 tons, an increase of 8.63%.

Bidding for steel mills in November

In November, steel recruitment is being promoted, Kungang pricing 7650 yuan/ton, Baosteel issued a bid that has not yet come out.

Downstream market

Magnesium ingot: Magnesium ingot fell sharply in October. From 24300-24500 yuan/ton after the festival, it fell to 21000-21,200 yuan/ton at the end of the month, a monthly decline of 3300 yuan/ton. First, some customers have purchased goods in advance before National Day, the post-holiday market wait-and-see atmosphere is strong, the second is the market new single down slowly, the third is the market rumor that there are several magnesium factories in the valley will resume production, spot transactions are not smooth, magnesium factories or goods traders reduce the market price to promote transactions, but the market price continues to fall resulting in more weak transactions.

Ferrosilicon Price Forecast

The price of raw coal fell, and the cost center of gravity of ferrosilicon moved down. In October, the production of iron silicon was 477,200 tons, and the supply and demand structure of iron silicon remained unchanged. Steel mills, a number of steel companies in the third quarter of net profit losses of 200-1.2 million, concerned about the production of steel mills at the end of the year. The market price of ferrosilicon has fallen below the high cost of electricity, in November the market is mainly concerned about changes in factory starts and electricity prices, if the output is effectively reduced, the market price will rebound, if the output remains high, ferrosilicon will be under pressure.

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