Price trendOn the 7th, the mainstream price of 72 ferrosilicon in the main producing areas of Ningxia was around 8,400-8,500 RMB/ton.Analysis reviewIn terms of steel mills, Hebei Iron and Steel Group released the December bid for ferrosilicon bidding. The bidding for ferrosilicon is 398 tons, a decrease of 1,051 tons from the previous month. Tangshan Iron and Steel New Area has 0 (-500) tons, Handan Iron and Steel has 0 (-)tons, Chenggang 132 (+33) tons, Wuyang Xinkuanhou 200 (-400) tons, Shigang special steel is 66 (-184) tons. Hebei Iron and Steel Group’s procurement volume has dropped sharply, adding to the downturn in the market. Last week Shagang finalized the December bidding price of 8,850 RMB/ton. There are also rumors that the bidding price of Nanjing Iron and Steel has been finalized at a low price. The return of the bidding price for steel plants is a foregone conclusion. The bidding price will be around 8,700-8,900 RMB/ton, and the subsequent bidding price may drop slightly.
In terms of manufacturers, the production costs of manufacturers have risen, and the price of electricity has generally risen to more than 0.5 RMB. The production cost of manufacturers is approaching 8,000 RMB/ton, which supports the spot price. The subsequent increase in electricity tariffs in Shaanxi has not yet landed, and follow-up needs to be tracked.
On the whole, the ferrosilicon spot market mainly revolves around steel mills, and northern steel mills are still waiting for Hebei Iron and Steel Group to bid for pricing. Poor demand from steel mills has a great impact on market information.