In just a few trading days, the ferrosilicon futures market staged a roller coaster market. The price of ferrosilicon futures has plummeted in the past two days, mainly because funds have left the market and the market has returned to fundamentals, but the spot market expectations remain unchanged.
It is reported that in the context of the previous surge in ferrosilicon futures prices, some manufacturers closed their orders and did not quote. Before May 31, the tax-inclusive cash price of natural ferrosilicon blocks was 7,100 yuan/ton. After a short-term price increase, the price of 72 ferrosilicon was between 7,500 yuan/ton and 7,600 yuan/ton, and most manufacturers were still closed.
In addition, after the company made a profit at the current price, some factories that had stopped production in the early stage have begun to resume production one after another, and the operating rate in May was higher than in the previous period. As supply picks up and demand growth weakens, the mismatch between supply and demand may improve in the later period, and prices may fall.
