Why Does The Price Of Ferrosilicon Rise And Fall? What Are The Factors That Affect The Price Of Ferrosilicon?
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Why does the price of ferrosilicon rise and fall? What are the factors that affect the price of ferrosilicon?
Recently, the price of ferrosilicon in the ferroalloy market has fluctuated greatly. Many customers and manufacturers are very curious about why the price of ferrosilicon rises and falls? What factors affect the price of ferrosilicon? The following is an explanation from a professional ferroalloy manufacturer about the factors that affect the price of ferrosilicon.
Influencing factor 1: Production cost is a direct factor
Any product has a production cost. Recently, due to the general increase in coke, silica, and freight, strict overload inspections, and the recent increase in oil and gas prices, the price of ferrosilicon is reasonable under many factors. However, some ferroalloy manufacturers with supply channels can produce ferrosilicon at a low cost of ferrosilicon raw materials, which has caused the price of ferrosilicon to fluctuate greatly in the market.
Influencing factor 2: Weather reasons during transportation
The weather will directly affect the market price of ferrosilicon. Rain and snow are more common recently. The maintenance and storage requirements during the transportation of ferrosilicon are more stringent. Ferroalloy manufacturers spend more on transportation than usual.
Influencing factor 3: Downstream steel frame continues to rise
Recently, downstream steel prices have continued to rise, giving ferrosilicon enterprises confidence to raise prices. Since October, domestic steel prices have continued to rise, coking coal and coke prices have risen steadily, and the cost per ton of steel has increased rapidly. Steel mills continue to raise ex-factory prices to pass on pressure. The stimulation of various factors will drive the demand for alloys such as ferrosilicon. The market also has a certain impact;
Influencing factor 4: Tight supply of ferrosilicon
Due to the tight supply of ferrosilicon spot, large ferrosilicon enterprises are in urgent need of inventory and have significantly increased their quotations. With the sharp increase of 500 yuan/ton in the price of ferrosilicon in mid-October, other small and medium-sized ferrosilicon enterprises have gradually followed up, and most factories have stated that they are all executing order production and the inventory spot is relatively tight.
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