Supply-Demand Adjustments and Cost Support
market has recently shown signs of adjustment, with post-holiday demand recovery progressing slower than anticipated. Supply-demand fundamentals indicate stable operational rates across the industry, while raw material costs, particularly for blue-coke, remain a key factor influencing market stability.
Supply-Side Analysis
Production enthusiasm among ferrosilicon manufacturers remains relatively high, with the national operating rate maintaining a stable level and daily output experiencing a slight increase. As the fourth quarter progresses, previously idled capacity is gradually resuming operations, suggesting a well-supplied market in the near term. However, inventory releases from delivery warehouses have added pressure to the market circulation segment.
Demand-Side Performance
Procurement activity from downstream steel enterprises has been moderate. While some mills completed pre-holiday stockpiling, most are currently adopting a need-based purchasing approach. Export market advantages remain limited due to multiple factors, and traders generally maintain a cautious stance, with large-scale stockpiling activities yet to emerge.
The blue-coke market remains steady, though potential increases in supply later this quarter may exert downward pressure. Supported by seasonal heating demand, the coal market shows limited room for significant price declines. Recent adjustments in electricity pricing policies in some regions also warrant close attention, as these factors collectively form the cost floor for ferrosilicon.
The ferrosilicon market currently reflects a balance of multiple factors, with buyers and sellers in a continued negotiation phase. Short-term fluctuations are expected to remain within a reasonable range, with significant adjustments unlikely. Procurement teams are advised to:
At Henan Fengyang Metallurgical Materials Co., Ltd., we closely follow market dynamics and leverage our stable supply chain system and technical expertise to provide high-quality ferrosilicon products and professional market guidance. During this period of market adjustment, we remain committed to supporting our partners in navigating challenges and identifying opportunities.
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This report is based on publicly available market information and is for reference only. Specific business decisions should be made in conjunction with professional advice and actual circumstances.
