On Friday, the increase in ferrosilicon led many black varieties. The main contract hit a rise or fall in early trading, then opened, and closed again at 11:30, hitting a new high since October 2024. On the previous trading day, the main ferrosilicon contract had closed up more than 2%, increasing positions by more than 20,000 lots in a single day, and enthusiasm for capital participation increased markedly. Lan Tan is the “first driver” of this round of growth. According to Mysteel data, the average transaction price of red liulin block coal as a raw material for blue charcoal on September 3 was 1,184 yuan/ton, up 288 yuan/ton from the previous period. This week, the price of small blue charcoal materials increased by about 230 yuan/ton month-on-month. In August, Lantan completed three rounds of increases, and the total production cost of ferrosilicon increased by about 300 yuan/ton. At the same time, the cost of the “three-piece set” of ferrosilicon — electricity, blue carbon, and chemical coke — has strengthened across the board. Electricity prices in major production areas remain high, and chemical coke prices are rising. Ferrosilicon is an energy-intensive industry. Electricity costs account for the largest share of costs, and as soon as electricity prices rise, the bottom of the cost rises. As a direct result of rising costs, production area profits are being squeezed to the limit. Under loss pressure, manufacturers are strongly willing to raise prices, and it is difficult to find low-price supplies. On the demand side, in September, a new round of ferrosilicon tenders for mainstream steel mills began intensively. Baosteel issued a tender notice on September 1. It plans to purchase 1,580 tons of FESI75AL1.5-B type ferrosilicon; a steel mill in Jiangxi tendered 6,450 yuan/ton of ferrosilicon in September; and a steel mill in Jiangsu priced 6,400 yuan/ton of ferrosilicon in September. Tender prices for mainstream steel mills generally range from 6,400-6,450 yuan/ton. Steel mill tenders “soared in volume and price” in September, igniting demand expectations.
Zhitongcaijing · 2d ago
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On Friday, the increase in ferrosilicon led many black varieties. The main contract hit a rise or fall in early trading, then opened, and closed again at 11:30, hitting a new high since October 2024. On the previous trading day, the main ferrosilicon contract had closed up more than 2%, increasing positions by more than 20,000 lots in a single day, and enthusiasm for capital participation increased markedly. Lan Tan is the “first driver” of this round of growth. According to Mysteel data, the average transaction price of red liulin block coal as a raw material for blue charcoal on September 3 was 1,184 yuan/ton, up 288 yuan/ton from the previous period. This week, the price of small blue charcoal materials increased by about 230 yuan/ton month-on-month. In August, Lantan completed three rounds of increases, and the total production cost of ferrosilicon increased by about 300 yuan/ton. At the same time, the cost of the “three-piece set” of ferrosilicon — electricity, blue carbon, and chemical coke — has strengthened across the board. Electricity prices in major production areas remain high, and chemical coke prices are rising. Ferrosilicon is an energy-intensive industry. Electricity costs account for the largest share of costs, and as soon as electricity prices rise, the bottom of the cost rises. As a direct result of rising costs, production area profits are being squeezed to the limit. Under loss pressure, manufacturers are strongly willing to raise prices, and it is difficult to find low-price supplies. On the demand side, in September, a new round of ferrosilicon tenders for mainstream steel mills began intensively. Baosteel issued a tender notice on September 1. It plans to purchase 1,580 tons of FESI75AL1.5-B type ferrosilicon; a steel mill in Jiangxi tendered 6,450 yuan/ton of ferrosilicon in September; and a steel mill in Jiangsu priced 6,400 yuan/ton of ferrosilicon in September. Tender prices for mainstream steel mills generally range from 6,400-6,450 yuan/ton. Steel mill tenders “soared in volume and price” in September, igniting demand expectations.
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