The ebb and flow of silicon iron, where is the future?
Silicon iron, which has been running at a low level for more than a year, suddenly saw two straight surges recently. SF main contract directly blocked the trading limit last Friday. On Monday, the opening was also straight to the trading limit, but before the end of the trading, it fell back. So what is the cause of this wave of ferrosilicon show all over the operation? On the one hand, the recovering economy is driving the gradual recovery of domestic ferrosilicon demand, and the silvery iron for a long time also opens the rising channel by this means. On the other hand, the ningxia production limit announced last week is changed into a fuse that directly ignites the long-accumulated passion of ferrosilicon. But the passion after always have to restore calm, emotional expectations also gradually return to rational continuous board rise was drenched, today's main silicon iron contract closed at 284, down 4.07%.
Generally speaking, the supply of ferrosilicon is mainly concentrated in northwest China, and the largest production area is Inner Mongolia. The downstream is mainly composed of crude steel, magnesium and export, so its production capacity is mainly concentrated in northwest China. Since the beginning of this year, affected by the decline in the price volatility of silicon iron, spot enterprise profits are squeezed, low profit state makes silicon iron factory willingness to increase production is lower, the supply of silicon iron gradually tight, coupled with the previous remaining inventory suppressed its price and profit, silicon iron factory production will still not change.
