What Is The Relationship Between Industrial Silicon, Ferrosilicon And Silicomanganese
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What is the relationship between industrial silicon, ferrosilicon and silicomanganese
Today, I will take a few minutes to learn about the related varieties of industrial silicon. Which varieties that have been listed in the futures market are closely related to industrial silicon? There are three, ferrosilicon, silicomanganese, and Shanghai aluminum. Let's talk about ferrosilicon and silicomanganese, ferrosilicon, silicomanganese, and industrial silicon. The names sound unusual. Looking at the trend chart again, they all took off together in September 2021, so what is the relationship between them? Many people saw that they all had the word silicon, and they thought that when the big market came, they must have risen and fallen together because of silicon. This is really not the case. Silica is very cheap, only a few hundred yuan per ton.
Although you all use silicon, the cost of silica is very low for these three varieties, accounting for less than 10%. The reason why these three varieties rose and fell together is not because of silicon, but because their logic is very similar. First of all, they are all large electricity users. One ton of industrial silicon consumes about 13,000 kWh of electricity, one ton of ferrosilicon consumes about 8,000 kWh of electricity, and one ton of silicomanganese consumes about 4,600 kWh of electricity. They are all large electricity users. Once there is large-scale power restriction, it will have a serious impact. Second, the reservoirs are not large. When the inventory is small, there are basically only tens of thousands of tons of inventory in the market, and the amount available for delivery is even less. With the leverage of margin, it is easy for large funds to operate the market. Third, the downstream price tolerance is high.
For example, ferrosilicon and silicomanganese, one ton of steel consumes only a few kilograms of ferrosilicon and more than ten kilograms of silicomanganese, and the cost ratio is very low, which is equivalent to what we often say, can you afford to put seasoning in the dishes you cook? Industrial silicon is also when the price of polysilicon materials in the downstream is expensive, the profit is there, and it can withstand the growth of industrial silicon. It does not mean that the downstream will stop working once the industrial silicon rises. The similarity of the characteristics of the varieties determines that they can come together. In addition to ferrosilicon and silicomanganese, what is the relationship between Shanghai Aluminum and industrial silicon? They are all materials for refining silicon aluminum alloy, which contains about 11% silicon. Their relationship can be described more like iron ore and coke. They are both raw materials for the same product.
In addition, they are also large electricity users, so there is a correlation, but because the aluminum plate is much larger, it is not quite the same as ferrosilicon and silicomanganese. Have you learned today's knowledge points?
