Ferrosilicon industry: hard gap, continue to be bullish.
The current price of ferrosilicon futures recovers and rises to a relatively high level of 10,000 yuan/ton; at the same time, it is also accompanied by a sharp drop in inventory. The social inventory of ferrosilicon is only 43,000 tons, a year-on-year decrease of 50%
We believe that behind this is the rapid improvement in industry supply and demand:
1) The conflict between Russia and Ukraine has led to a gap in the supply and demand of global ferrosilicon in the past month, which in turn has driven the growth of China’s ferrosilicon export, which has increased by more than 100%;
2) The output of steel mills on the demand side gradually resumed production, returning to 2.67 million tons/day. Based on the stable control of steel production throughout the year and the bottleneck of ferrosilicon monthly output returning to more than 500,000 tons, we judge that the subsequent supply and demand gap will still be obvious or even further expanded, and the price of ferrosilicon will further strengthen
Post time: Jul-04-2023
