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[Ferro-alloys.com] The price of ferrosilicon has been on the decrease since the late July, which makes most manufacturers hold pessimistic attitude towards the future market. So far, the price of 75# FeSi in main producing area is quoted at RMB 4,650 - 4,750/mt, that of 72# FeSi is RMB 4,300 - 4,450/mt. In fact, as most producers are losing money, they are more willing to trim or halt production. It is reported that large enterprises’ production is slightly less than before. While the small and medium-sized plants reduce their production by 50%.

According to the data provided by National Bureau of Statistics and other relevant departments, China produced 415,300 tons of ferrosilicon in Aug, 2015. And during the past eight months, the production of ferrosilicon amounted 3.0209 million tons; China produced 66.94 million tons of crude steel in Aug, 2015 and the output of crude steel in the past eight months is 540.602 million tons; China produced 73,754 tons of metal magnesium in Aug, 2015 and its production volume through the past eight months is 525,000 tons; the FeSi export volume in Aug, 2015 is 17,800 tons while the total exporting volume in the past eight months is 188,200 tons. Analyzing from the data, we can easily see that the conflict of supply and demand still exists in domestic ferrosilicon market.

This month ending, a new round of steel mills’ biddings have also been put on the agenda. The personages pay close attention to the tender price tendency. Although on the downstream market, the metal magnesium price rose slightly, bringing about some fluctuation to the whole market, some plants even estimate that the ferrosilicon market is probable to resume its prosperity; but most mills contend that the future tendency is complicated. If the procedure of trimming or halting production in the name of stabilizing the price is carried out slowly and the downstream market is hardly improved, the future market will be still at the risk of declining.

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• [Editor:Chen Lian Hai]