July 29, 2022
In July, the domestic ferrosilicon market continued to operate in a weak position, the cost moved down,
and the futures disk once fell below expectations. In July, the price of steel bidding fell sharply, and in August,
the steel bidding was delayed.
The demand performance was poor, and the transaction was difficult. The spot quotation fell again and again.
Manufacturers were facing the pressure of shipping and stock accumulation, and many said they had fallen into
a "deep loss" state. Since July, manufacturers in Gansu, Ningxia, Qinghai, Shaanxi and other production areas
have shut down their boilers for maintenance or production in order to save themselves at a guaranteed price.
On the 20th, it was learned that except for a few manufacturers, almost all ferrosilicon furnaces in Zhongwei region
were shut down. The industry estimated that the national monthly output would be affected by about
120000 tons, and it was estimated that the ferrosilicon output would drop to about 480000 tons in July.
Compared with the monthly output of 500000-550000 tons from January to June, the supply side tended to move down
in July, with obvious reduction, and the contradiction between supply and demand was eased in stages. From the third
week of July, the futures disk rebounded slightly, reducing the impact on the spot market, but it was still inferior to the
weak downstream demand, and it was difficult to completely reverse the situation in the short term.