Recent price summary of ferrosilicon
According to the recent price trend of ferrosilicon, we can see the following table. In general, the recent ferrosilicon prices tend to be stable and do not fluctuate much up or down, but according to our judgment for the future, ferrosilicon prices are expected to rise. We counted the price trend of Chinese ferrosilicon exports from the end of June to the end of August, and we can see that the price of ferrosilicon has been on a downward trend for the past two months 1700 U.S. dollars and stable for up to a month.
Analysis of the future price of ferrosilicon
We analyzed that it may be due to the general background of the Fed raise the interest rate, the money in the market is relatively tight, commodities are basically going down channel. Buyers are waiting and watching, waiting for prices to stabilize before buying, steel mills are not uncertain about the future prospects, so the willingness to start work is not strong, resulting in the decline in ferro-silicon prices. But after August, the price of ferrosilicon did not fall again because the current price has made ferrosilicon manufacturers no longer willing to produce, has fallen below the cost or near the cost line of manufacturers.
The production of ferrosilicon is mainly composed of silica, carbon, and ferric oxide, and the reaction of reduction takes place at a very high temperature, from silicon dioxide to silicon monoxide and then precipitation of oxygen from the carbon to form silicon, which is then combined with iron to form ferrosilicon. Or directly generate silicon carbide, silicon carbide is destroyed by iron elements directly to form ferrosilicon, and then silicon carbide is destroyed by silicon dioxide or silicon monoxide to generate silicon, and then silicon elements and iron elements combined to form ferrosilicon.
Above we have briefly described the production method of ferrosilicon, so we can roughly deduce what the cost of ferrosilicon consists of, in fact, mainly raw materials and electricity, because the cost of raw materials is not high, so the production process requires a lot of electricity to reach a furnace temperature to produce ferrosilicon, the result is that the cost of electricity accounts for sixty to eighty percent of the cost of ferrosilicon production.
Because of our current policy of limiting electricity, the price of ferrosilicon may rise sharply after the ferrosilicon market turns better. At that time, it may be due to the shortage of ferrosilicon and the rise in electricity prices, coupled with the improvement in demand, which may cause the price of ferrosilicon to rise.
If you will be using ferrosilicon in the next few months, we suggest you place your order now, as the price is now very close to the cost price, and the recent sea freight price is also very cheap, so it is recommended to stock up in advance. We cannot guarantee that the price will not be lower in the future, but the fact is that the current price is very cost effective.