Ferro Silicon Price Trend Analysis 2024
After the Spring Festival, the winter storage performance in January was poor and silicon prices continued to fall; in February, demand recovered slowly and prices fell slightly. The price of Ferro silicon continued to decline during the domestic steel recruitment process. The main factor was the reduction in ferro silicon production costs. Firstly, the domestic steel recruitment is gradually advancing, which means that the pricing of steel companies has moved downwards. Secondly, the price of raw material semi-coke has dropped. Thirdly, the settlement of electricity prices has been settled.
Ferro silicon prices in Ningxia fell slightly in December, but electricity prices in Qinghai and Shaanxi increased in January. The market transaction atmosphere is average, and downstream manufacturers are passive in stocking. In the middle of the year, the domestic steel bidding has come to an end, and the market is mainly delivery. Traders need to stock up just before the year. The market lacks vitality, and the pace of transactions gradually slows down. It is very difficult for ferro silicon production plants to close transactions with high quotations.
From the cost side, ferro silicon costs will be supported in the short term after the electricity price rises, but in the long term, we need to pay attention to the status of coal prices. From the supply side, ferro silicon production in February was 439.200 tons, a decrease of 31.300 tons from January. The market price of ferro silicon has been hovering at a low level for a long time, and it cannot be ruled out that factories in the production area will shut down for maintenance in March. From the demand side, downstream operations have gradually resumed operations after the holidays, but the resumption of steel mills has been slow and demand is recovering slowly. It will take time for ferro silicon stocks to be digested after the holidays. In March, the market focused on the recovery of demand and changes in the start-up of silicon plants, and the market operation was still under pressure.
