The recent data released by China’s National Bureau of Statistics has revealed a significant drop in the production of molten iron and crude steel in the first five months of the year. The decline in crude steel output has put pressure on the Chinese ferro-silicon market, a key raw material used by the steelmaking industry.
Market participants have expressed weak confidence in the demand for ferro-silicon, leading to a decrease in both futures and physical market prices. The most-traded September ferro-silicon futures contract closed lower, indicating a lack of improvement in demand due to the reduced crude steel output.
In addition to ferro-silicon, the silico-manganese market in China has also been affected by the drop in crude steel output. The price of silico-manganese in the Chinese spot market has fallen, with bearish sentiment prevailing in the market. With decreased demand from the steel industry and high supplies of silico-manganese, market participants are facing challenges in the current market conditions.
Despite a slight increase in crude steel production in May, it is not enough to offset the overall decline in production from the first five months. Market experts and traders are closely monitoring the situation and are cautious about future market trends.
The impact of the reduced production of molten iron and crude steel in China is rippling through the ferro-silicon and silico-manganese markets, creating uncertainty for industry players. The coming months will be crucial in determining how the markets will respond to the changing dynamics in the steel industry.
