Ferroalloy prices will be high in the near future

 　From 2017 to 2018, as the downstream steel market gradually lost from loss to obvious profit, the ferroalloy industry has considerable profit margins. Overall, the downstream steel industry in the process of overall profit recovery, the demand for ferroalloys remained stable overall, in the process of industrial chain profit distribution, the price of ferroalloys as upstream raw materials also rose. At the same time, environmental pressures are normalized and uncertainties are increasing. In 2019, there are new changes in the market of ferrosilicon and manganese silicon. Where will the future of the black industry go? In this context, Jinshi Futures held a 2019 iron alloy period combination seminar in Anyang on March 16th. The seminar was hosted by the Anyang Sales Department of Jinshi Futures and supported by Zhengshang. Nearly 200 people from iron alloy spot companies and investors from Anyang and surrounding areas attended the seminar.


　　At the seminar, the head of the non-agricultural department of Zhengshang Institute introduced the rules and regulations of the ferroalloy futures, the revision of the rules and the operation of the recent rules. When he listed the relevant data, he said that since 2019, the average daily turnover of ferrosilicon futures was 68,000 hands, and the average daily position was 118,000 hands; the daily average turnover of manganese silicon futures was 95,000 hands, and the average daily position was 146,000 hands. The proportion of corporate transactions and positions has increased steadily, and the participation structure has become more abundant, achieving full coverage of alloy companies, traders, steel mills and institutions. Moreover, the proportion of legal person positions tends to be stable, and the price discovery function is good: the correlation coefficient between ferrosilicon futures and Hebei traders is 0.912; the correlation coefficient between manganese silicon futures and Jiangsu traders is 0.959. At the same time, it has accumulated successful delivery experience. The statistics show that the cumulative delivery volume of SF2018 (including the period of cash) is 56,420 tons; the cumulative delivery volume of SF1901 contract (including the period of cash) is 23,240 tons.