Review and Trading Tips of Ferroalloy Market

Ferrosilicon: this week, the ferrosilicon price slightly fell by 50 yuan / ton, with the mainstream market price of 72# natural block is 5500-5900 yuan / ton, and 75 # natural block price is 5800-6000 yuan / ton, including tax. Downstream demand is still poor, a new round of bidding for steel plants has not yet begun, and ferrosilicon enterprises have accumulated spot inventory, which is pessimistic about the future market expectations. It is expected that ferrosilicon market will be weak, with limited falling space.

Silicomanganese: this week, silicomanganese price continued to decline, with a range of 100-150 yuan / ton, and the price is 6200-6300 yuan / ton in Inner Mongolia, 6150-6250 yuan / ton in Ningxia and 6400-6500 yuan / ton in Guangxi. The market price is lower than the level that of before the spring festival. A steel plant in Central South China took the lead in finalizing the bidding price of 6600 yuan / ton for silicon manganese in March, which was 700 yuan / ton lower than the purchase price last month. The inventory of silicon manganese enterprises is a little higher than the normal level, and the enthusiasm of the merchants for shipment was high. Some southern silicon manganese enterprises delayed the resumption of production, and it is expected that the silicon manganese market will continue to be weak.

Vanadium: this week, the price of domestic ferrovanadium and alloy gradually weakened, and the price of vanadium pentoxide first fell and then rose. Due to the reduction of production by steel plants, the demand for ferrovanadium decreased, and the price of vanadium pentoxide was under pressure. At the beginning of the week, the price of vanadium pentoxide also fell by 1300 yuan / ton. However, due to the limited supply of vanadium pentoxide, its price rose in the second half of the week, recovering the decline at the beginning of the week. As of Thursday, the price of vanadium pentoxide was RMB 97,000-98,000 yuan / ton (including tax). Ferrovanadium price fell by RMB 4000 yuan to RMB 105,000-106,000 yuan / ton (including tax), and vanadium nitrogen alloy price fell by RMB 5000 yuan / ton to RMB 152,000-153,000 yuan / ton (including tax). At present, the supply of ferrovanadium and vanadium nitrogen alloy in the market is good, while the demand is still weak, and its price is expected to continue to decline.

Hot point: in 2019, the output of Eramet manganese ore was 4.8 million tons, while the expected amount was 4.5 million tons, and the target output will be more than 5 million tons in 2020. CML United Mining has issued a quotation for China's manganese ore for March: Australia's price will be 5.0 USD / ton unit, up 0.5 USD / ton unit compared with February's quotation, and the delivery of CML Australia's manganese ore will be delayed for one month for February and March due to the coronavirus and hurricane.

Trading Tips: ferroalloy price is likely to fall further, and steel enterprises shall purchase based on demand.