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What are the factors affecting the price fluctuation of ferro silicon?

What are the factors affecting the price fluctuation of ferro silicon?

Chinese FeSi manufacturer provides price fluctuation analysis of ferro silicon


First:Policy and Situational Impact for ferro silicon

Changes in relevant policies will  affect the demand for Fesi, resulting in price changes.

Second: its own cost

The main cost of Fesi is the cost of electricity, and the price of electricity is generally relatively stable, so the cost support of fesi is relatively clear and solid. Once the price is lower than the cost, the phenomenon of enterprises stopping and reducing production is obvious, and the reduction of production will prompt the price to return to the cost line. In addition, although the cost of raw materials is relatively small in the cost of ferro silicon, it fluctuates greatly. Therefore, when the price of semi-coke and other raw materials rises, the price of ferrosilicon usually rises accordingly.

Third: the profits of the downstream steel industry

Most of the demand for ferro silicon comes from the downstream steel industry. Iron and steel enterprises occupy a dominant position in the ferrosilicon market. The price of iron and silicon is mainly based on the monthly bidding price of iron and steel enterprises. However, due to overcapacity and a large number of enterprises, the ferrosilicon industry is often forced to accept the prices locked by steel companies. Therefore, the profit of the iron and steel industry directly affects the willingness to bid for ferrosilicon, and then affects the price of ferrosilicon.

Fourth: Periodic changes in demand

The pricing mechanism of fesi and the seasonal factors of the production of downstream steel mills will affect the demand for ferrosilicon, resulting in periodic fluctuations in the price of ferrosilicon.

Fifth:the macroeconomic situation

The downstream of the ferrosilicon industry is mainly the iron and steel industry and the magnesium metal smelting industry, the main downstream of the iron and steel industry is the real estate industry and the automobile industry, and the main downstream of the magnesium metal is the automobile industry. Therefore, macroeconomic trends will inevitably have an impact on end-demand industries such as real estate and automobiles, which in turn will have an impact on FeSi prices.

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