Major Gansu Ferrosilicon Producer Shuts All Furnaces, Cutting Daily Output by 700 Tonnes; Ferrosilicon Futures Rebound Sharply

On August 4, according to Mysteel, a large Gansu-based producer shut down all furnaces, cutting daily ferrosilicon output by about 700 tonnes, triggering a sharp rebound in ferrosilicon futures.

Key Facts

On August 4, according to Mysteel, a large production enterprise in Gansu shut down all its furnaces, reducing daily ferrosilicon output by about 700 tonnes, which triggered a sharp rebound in ferrosilicon futures. In the spot market, Tianjin 72# ferrosilicon was quoted at 6,280 yuan/tonne, a premium of 420 yuan/tonne over futures; Jiangsu 72# ferrosilicon was quoted at 6,050 yuan/tonne, equivalent to 5,940 yuan/tonne on a futures basis, a premium of 80 yuan/tonne over futures.

Market Changes

Ferrosilicon futures remained rangebound within a triangular consolidation pattern, rebounding sharply after testing the lower boundary. Attention is on resistance near 5,950 yuan/tonne above and support near 5,600 yuan/tonne below. For silicomanganese, Tianjin 6517 silicomanganese was quoted at 5,600 yuan/tonne in the spot market, equivalent to 5,790 yuan/tonne on a futures basis, a premium of 160 yuan/tonne over futures. Silicomanganese futures continued their medium-term downtrend, oscillating weakly after breaking below the 5,700 yuan/tonne level. In the short term, attention is on support at 5,600 yuan/tonne; if it fails to hold, prices may search for 5,400 yuan/tonne.