December 27, 2022, Ferro silicon price is relatively stable. Ferrosilicon mainstream quotation is FeSi72% ￥8000-8100, FeSi75% ￥8500-8600 (EXW natural block). Last Friday, Zhongwei City issued an emergency notice to restrict the production and discharge of some ferrosilicon production enterprises. The implementation of the policy will end on December 31.
Current Price of Ferro Silicon
The production volume of Zhongwei Ferrosilicon Plant decreased. Futures stopped falling and rose yesterday, and manufacturers’ quotations remained stable.
Steel plant bidding: Xianggang, Xinyu, Guangxi Shenglong, etc. in the southern region have finalized the price for January last week, and the bidding in the north is relatively late.
Metal magnesium factory: The magnesium ingot market is mainly stable, and the factory quotes ￥21600-2700 yuan/ton. The actual price can be negotiable. Currently in the downstream stocking period, most magnesium ingot enterprises insist on stabilizing prices under cost pressure.
At present, there is no centralized stocking in downstream, and there is no strong support for price rises. However, the pressure on the factory’s inventory is small, and it is basically in the state of order production. The price drop is limited, and the recent market fluctuations will not be too large.
What are the main factors affecting the price of ferroalloys
- Ferroalloys are mainly produced by electric furnaces, which require high power consumption and abundant and cheap power resources. The production of ferroalloys is an energy-intensive process, and energy accounts for a large proportion of the cost structure of ferroalloys.
- Manganese ore has a large proportion in the production cost of manganese alloys. As far as the main varieties of ferroalloys are manganese, chromium, and silicon, in addition to abundant domestic resources and low price of silica, manganese ore has low domestic grade, high mining cost, and reserves. and other factors, about one-third of manganese ore needs to be imported, and manganese ore accounts for a relatively large proportion of manganese alloy production costs; my country’s chrome ore resources are extremely scarce, and basically all rely on imports, and chromium ore accounts for a relatively large proportion in the cost structure of ferrochrome.
- The production cost of ferromanganese alloy is mainly composed of the purchase cost of manganese ore, electricity and coke, of which the cost of manganese ore accounts for about 60%, the cost of electricity accounts for about 20%-25%, and the cost of coke accounts for about 10%-15%.
In addition, when many enterprises produce manganese ferroalloys, in addition to using domestic low-phosphorus, low-iron, low-sulfur, and low-silicon manganese ores, in order to improve the grade of raw materials, increase the recovery rate of manganese, reduce power consumption and production the cost needs to be smelted after purchasing part of the imported ore and mixing the domestic ore.
Therefore, fluctuations in the price of manganese ore, electricity and coke have a greater impact on the production of ferromanganese alloys.