December 15, 2023
This week, the ferro silicon alloy futures market saw relatively little fluctuation. Despite rumors regarding environmental issues in Qinghai, the actual impact remains relatively minor. Both futures and spot markets have not seen any significant adjustments. Today, factory quotations stand at 72# at 6600-6650 RMB/ton, 75# at 7000-7100 RMB/ton, and 65# at 6350 RMB/ton for cash sales of natural blocks ex-factory. In Shaanxi, bulk sales are at 72# 6400-6500 RMB/ton. The market atmosphere for transactions is relatively subdued, with a few end-user steel mills making sporadic stocking efforts, while traders predominantly focus on immediate procurement needs.
November's electricity pricing settlements in production areas are completed. Few companies in Qinghai are operating at full capacity. Since the electricity price increase in October, more manufacturers are engaging in peak-load shifting production. In November, peak-load shifting electricity prices ranged from 0.36 to 0.39 RMB/kWh, varying in duration, resulting in differing electricity price settlements. The full-load electricity price is around 0.43 RMB/kWh. Gansu's full-load electricity price is at 0.48-0.49 RMB/kWh, Ningxia at 0.45-0.48 RMB/kWh, Baotou in Inner Mongolia at 0.43-0.45 RMB/kWh, and Ulanqab at 0.39-0.4 RMB/kWh. In Shaanxi, companies without self-owned power plants experience a range of 0.41-0.45 RMB/kWh for peak-load shifting, with significant differences in electricity price settlements due to varying durations of peak-load shifting.
In terms of steel procurement: This week's steel procurement continues. Zhongtian Changzhou accepts 7080 RMB/ton, Xinyu accepts 7100 RMB/ton on acceptance, Hebei Donghai Special Steel offers 6930 RMB/ton in cash, Minyuan offers 7000 RMB/ton in cash, and Kunming Steel offers 7210/7220 RMB/ton.
In summary: Northern regions are experiencing snowstorms, leading to some disruptions in logistics and transportation. As a result, a small number of customers are preemptively stocking up for January's usage. The market, however, primarily operates on a need-based transaction model, and in the short term, market prices are expected to remain relatively stable.
