Although the futures market has rebounded, some areas of plant shutdowns, production cuts continue to spread the news, the industry's confidence slightly boosted, but in the raw material prices have loosened, the cost side of the support weakened, the overall demand situation continues to be poor, the market supply is still relatively sufficient and other negative information, the industry is now most of the confidence is not enough to actually deal with the price of loosening.
Although the raw material coking coal prices have recently lowered on the coke enterprise profits have some recovery, but most of the coke enterprises are still in the red, production restrictions are still large, affected by the market's weak atmosphere, the coke enterprises to raise the production is expected to be lower, in the short term will remain low operating rate, coke supply is tight. Demand side just now prices rebounded, but the work rate did not rise significantly, steel mills continue to maintain production restrictions, low demand for coke, on-demand replenishment. Comprehensive view of the coke market is still in a weak trend, coke enterprises and steel mills are losing money, the current coke and steel game mentality is stronger. It is expected that in the short term, the coke market will run steadily and weakly, and the market will focus on the coke inventory situation of each link and coke and steel profits.
Manufacturers to reduce the suspension of production enterprises by seeing more and more, production fell. As of March 21st work rate (capacity utilization rate) 33.68% of the country, down 0.77% compared with the previous period; average daily production of 13530 tons, down 130 tons compared with the previous period.
March steel trick is basically over, the market waiting for April into the situation. Steel tender prices fell continuously, March 21, a steel mill in East China ferrosilicon tender price of 6600 yuan / ton, the number of 900 tons, acceptance tax to the factory. Short-term replenishment drive is small. Some traders wait for the opportunity to hoard, not eager to purchase. Export transactions slowed down significantly, and some traders said that the orders were less than in February, and short-term traders' sentiment was negative.
Overall, ferrosilicon prices may face a return to realistic pricing after the short-term shortcomings are gradually digested. Ferrosilicon supply potential to be greater than demand, support prices to rise further need to see the continued release of the demand terminal. In the short term, the ferrosilicon spot market may continue to run mainly on the weak side.
