chipmonkzslots| Ferrosilicon: The operating rate increased by 1.7%, the average daily output increased by 350 tons. In May, the bidding price of Hegang's 75B ferrosilicon rose to 7300 yuan/ton

News summary

Short-term bullish atmosphere in the ferrosilicon marketchipmonkzslots, the average daily output increased to 14413 tons; the manganese and silicon market was weak and stable, and the supply was slowly rising. It is recommended to wait and see strategies and pay attention to risk control.

Newsletter text

[The ferrosilicon market has temporarily stabilized, and the operating rate has increased by 1%chipmonkzslots.70%] The industry side shows that the operating rate of a sample of 136 independent ferrosilicon enterprises across the country has increased to 34.30%, an increase of 1.70% from the previous period, and the average daily output has reached 14413 tons, an increase of 350 tons from the previous period. Although production in Ningxia's production areas has steadily advanced, start-ups in Shaanxi and Qinghai have remained at a low level, and the increase in supply has not yet had a significant impact on prices.

[The bidding price of Hegang's 75B ferrosilicon increased month-on-month, and the market was cautious in stocking.] In terms of demand, the bidding price of Hegang's 75B ferrosilicon rose to 7300 yuan/ton in May, an increase of 700 yuan/ton from April. Although the transaction of finished products is average and downstream profits are shrinking, the market is worried that the increase in supply may drag down prices, and its attitude towards stocking is more cautious. However, recent macro policies have released positive signals, manufacturers 'profits have rebounded, and market speculation has warmed up. It is expected that the market will maintain a bullish atmosphere in the short term.

[The SF2409 contract fluctuates upwards, and it is recommended to short on highs] Strategically, the SF2409 contract shows a volatile upward trend. Against the background of shrinking demand after steel sales, there is a lack of sustained driving force and the futures spot market is facing correction pressure. In terms of operational suggestions, consider selling short positions on highs and reminding investors to pay attention to risk control.

[The manganese and silicon market is weak and stable, and supply is rising] The manganese and silicon market is currently in a weak and stable state. On the cost side, the manganese ore market continues to support prices, and the price space of chemical coke is limited, providing certain support for the bottom of manganese and silicon. On the supply side, Guilin is the main manufacturer that has resumed production in Guangxi, with a limited increase in output; due to geographical advantages, Yunnan has purchased a large number of Myanmar mines, and the number of manufacturers that have resumed production has increased significantly, while the start-up of manufacturers in the north has not fluctuated much, and the overall supply of manganese and silicon has increased.

[Traders 'wait-and-see sentiment rises, manufacturers' confidence declines] In terms of industry, affected by restricted positions and Australian news, the market surface showed a major correction. Traders 'wait-and-see sentiment increased, and manufacturers' confidence declined. The market has increased in low-cost sources, and the focus of transactions has shifted downward. Although a number of positive terminals have boosted the sector, the black chain has been significantly repaired. Driven by costs, the manganese and silicon market has recently been independent of the sector and has increased too much. The market is worried that subsequent output will rebound too quickly, putting pressure on prices and increasing market disturbances.

[The SM2409 contract has risen sharply, so it is recommended to wait and see in the short term] Strategically, the SM2409 contract has risen sharply. Taking into account the current intertwined state of long and short positions in the market, it is recommended to focus on wait-and-see operations in the short term, and investors are advised to pay attention to risk control.