Monthly Report of Ferrosilicon Market in August, 2021

  • Friday, September 3, 2021

  • Keywords:ferrosilicon, supply, demand, steel, magnesium, spot, futures
[Fellow]The manufacturer's confidence was very good, and the market was mainly strong.


As soon as August came, the news that some major ferrosilicon plants in Ningxia shut down successively came out, which was estimated to affect the monthly output of 26600 tons, and the supply side continued to be tight.

At the same time, the ex factory price of semi-coke increased slightly. Near the end of the month, some manufacturers quoted 1720 yuan per ton for small materials. On August 26, the main contract of ferrosilicon futures broke 10000 yuan per ton; On August 30, ferroalloy futures collectively rose, manganese silicon and ferrosilicon both rose by the limit, and ferrosilicon main contract continued to hit a record high. Some steel mills in the South took the lead in announcing the bidding information in September. The bidding price was mostly more than 10000 yuan per ton, with a month on month increase of 900-1600 yuan per ton. There was also support in the export market - according to data of China Customs, in July 2021, China exported 56745.327 tons of ferrosilicon (containing by weight more than 55% of silicon), an increase of 35.47% over the previous month and 325.95% over the same period last year!

Driven by various positive factors, the spot quotation of ferrosilicon at the end of August was stable and broke 10000 yuan per ton, the manufacturer's confidence was very good, and the market was mainly strong.

As for the downstream market, in August, domestic steel prices fluctuated greatly and rose and fell frequently. The supply side operates at a low level with the policy of reducing crude steel output in many areas; On the demand side, due to the impact of the off-season, the release was insufficient, and the overall situation was weak in both supply and demand. However, considering the recent sharp drop in the purchase price of raw materials and the gradual recovery of demand in the traditional peak season in September, the steel market may be expected to pick up.

Different from the steel market, the domestic metal magnesium market made great progress in August! Spot was in short supply and inventory was low; Demand, including overseas demand, continued to follow up, and the transaction was generally good; This month, the price of domestic metal magnesium continued to rise, reaching new highs. At the end of August, cash quotation including tax of 99.9% magnesium ingots in Fugu area exceeded 29000 yuan per ton!

  • [Editor:kangmingfei]

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