News summary

On May 20, the main contract of ferrosilicon futures, 409, rose slightly by 0avetsxj531.54%, closing at 7396 yuan/ton; the main contract of manganese and silicon futures 409 rose sharply by 6.99%, closing at 8914 yuan/ton. The spot market price of ferrosilicon rose, inventories were low, and supply was tight; the spot price of manganese and silicon was stable, and inventories fell, but the number of warehouse receipts rose, putting pressure. Supported by increased demand and cost, ferrosilicon prices have strong support.

Newsletter text

Futures Market Summary on May 20avetsxj531: Performance of ferrosilicon and manganese-silicon contracts [ferrosilicon and manganese-silicon futures contracts have increased significantly] On May 20, the main contract 409 in the ferrosilicon futures market showed a turbulent upward trend. It rose briefly after the opening of the day, and then entered a turbulent correction state, but it rebounded slightly at the end of the session, and the final closing price was 7396 yuan/ton, up 0.54% from the previous trading day. At the same time, the main contract of manganese and silicon futures, 409, also showed a turbulent upward trend. It has fluctuated all the way since the opening, and the pull-up at the end of the session was particularly prominent. The closing price was 8914 yuan/ton, an increase of 6.99%. Ferrosilicon spot market dynamics: On May 20, the price range of 72% FeSi natural blocks in major producing areas was 6,700 - 6,950 yuan/ton. Compared with the previous trading day, the overall trend showed an upward trend, while Inner Mongolia and Shaanxi remained stable. The price of 75% FeSi natural blocks in various production areas ranges from 7,400 to 7,500 yuan/ton, which is also mainly increased, and the price in Inner Mongolia remains unchanged. On the technical side, the daily KDJ indicator of the ferrosilicon 409 contract rose, the K value and J value rebounded, and the D value continued to rise; the red column of the MACD indicator expanded. Manganese and silicon spot market and technical analysis: On the same day, the quotations in various manganese and silicon producing areas were mainly stable in the range of 7,800 - 8,000 yuan/ton, which was generally flat. The quotations in Inner Mongolia declined, down 50 yuan/ton. On the technical side, the daily KDJ indicator of the manganese and silicon 409 contract showed a divergence, with the K value and J value recovering, while the D value continued to decline; the red column of the MACD indicator expanded. Outlook for the future: On the demand side, with the apparent demand for the five major steel varieties rebounded significantly this week, inventories were depleted, total output reached a new high, and demand for ferrosilicon grew significantly. On the supply side, ferrosilicon companies reduced production significantly in the first quarter. However, as prices rose, shipments were smooth and inventories fell to new lows. At this stage, company output and operating rates rebounded, but supply is still tight. In May, Hegang's ferrosilicon price was 7300 yuan/ton, which had a positive impact on market sentiment, and the price of ferrosilicon received strong support. The manganese and silicon market increased its position today and pulled up significantly late. On the cost side, with the supply of manganese ore expected to decrease by 10%, the room for price increases is limited. The price of manganese and silicon has turned from rising to falling, and the price of manganese ore has shown signs of stabilizing. In terms of inventories, due to the increase in manganese and silicon prices in the early period and the growth in corporate sales, the originally historically high inventories have dropped, but the number of warehouse receipts is still rising, and inventory pressure still exists. At present, the manganese and silicon market is greatly affected by funds, and investors are advised to operate after the price correction.