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Ferrosilicon Market Rise Firmly
- Nov 08, 2017 -

Ferrosilicon Market Rise Firmly

Since October 2017, ferrosilicon price kept rising and has surpassed  6000 RMB/MT, and it seems to 

rise further. It has raised by about 2000 RMB/MT from last November.

There are some reasons causing this; one is the influence of the environmental supervision, which 

largely reduced the number of ferrosilicon producers. Especially, in Ningxia province, nearly all the 

ferrosilicon manufacturers closed or eliminated the output. At the beginning of 2017, there were 

totally several companies left less than ten. Now, only three or four more companies restarted. Even 

though, the output of all ferrosilicon firms still cannot satisfy the demand of the market. Second is,

 after the environmental supervision in steel industry for eliminating backward capacity, this industry

 runs more effectively boosting the benefit of steel mills. Therefore, they expand steel production as

 well as the needs of ferrosilicon. In this way, the imbalance between the demand and the supply to

 some extent stimulate the increase of ferrosilicon price. Furthermore, the purchasing price of 

ferrosilicon from steel enterprises raised a lot in June, July and August. Third is the rise of silica, coal 

and semi-coke prices, the high cost of electric charge, which all results to the rise of ferrosilicon

 price. Moreover, the futures market is starting to affect the spot market. And due to some ferrosilicon 

companies only run the futures market not spot market, lead to the ferrosilicon production in spot 

market get shorter.

Meanwhile, as to its downstream product magnesium, ferrosilicon also has a positive effect on the 

price of magnesium ingot, magnesium metal and other magnesium product.