SunSirs: Driven by the Futures Market, Ferrosilicon Spot Prices Rose at a High Level

　　Price trend

　　The spot price of ferrosilicon (grade: FeSi75～B; particle size/mm: natural block) rose at a high level, and the price at the main plant in Ningxia was around 9,200-9,300 RMB/ton.

　　Analysis review

　　The bidding for steel mills basically ended in August. Last week, only a few steel mills had re-bidding, and the price was significantly higher than that of the previously priced steel mills. The opening of futures on the 23rd was gradually approaching the 10,000 mark, and factory confidence was once again strengthened, thus forming favorable support for the ferrosilicon spot market. In addition, the spot supply in the market was tight. Due to the psychological influence of “buy the ups and not the downs”, the market demand has increased slightly recently. Coupled with the high price of semi-coke on the cost side, and the spot circulation was tight, the production was based on orders.

　　At present, under the support of the power curtailment policy and other positive information, the industry’s confidence is improving and the sentiment of insisting price is not diminished, and the willingness to bullish is strong.

　　Market outlook

　　On the whole, the market sentiment is positive and the bidding for the steel plant in September is about to start. In the short term, it is expected that the ferrosilicon market may still operate strongly.