Ferrosilicon Market Summary Dec 2016

In December, China's ferrosilicon market demand kept all the way down, and the prices fell continually.Asian Metal CopyrightIn December, China's ferrosilicon market demand kept all the way down, and the prices fell continually.Asian Metal Copyright Since October and November, the operating rate in the main producing areas has increased, leading the overcapacity and oversupply in the market.Asian Metal Copyright At the same time, the electricity charge reform in both Qinghai and Ningxia region at the beginning of the month caused a phenomenon of reducing output volumes, and the majority of manufacturers chose to avoid peak production.Asian Metal Copyright Despite that the tender prices from steel mills rose slightly In December, the market spot prices decreased gradually.Asian Metal Copyright34kWh in Qinghai, while the peak averting production of was only RMB0.Asian Metal Copyright Under the influence of environmental protection, an increase of electricity and the pressure of inventory funds, ferrosilicon prices were a lack of the possibility to rise and forced to fall.Asian Metal Copyright Despite that the tender prices from steel mills rose slightly In December, the market spot prices decreased gradually.Asian Metal Copyright At the same time, the electricity charge reform in both Qinghai and Ningxia region at the beginning of the month caused a phenomenon of reducing output volumes, and the majority of manufacturers chose to avoid peak production.Asian Metal Copyright28kwh.Asian Metal Copyright For example, standard electricity fee was of RMB0.34/kWh in Qinghai, while the peak averting production of was only RMB0.28/kwh. The same situation happens in Ningxia region as well, and over 3/2 manufacturers chose to avoid peak production.
.Asian Metal Copyright Despite that the tender prices from steel mills rose slightly In December, the market spot prices decreased graduallyAsian Metal Copyright