Futures & Spot Summary
The ferrosilicon main November contract closed lower today, accompanied by reduced open interest. Spot market trading was moderate, with prices holding steady across major producing regions and no significant fluctuations observed.
Supply Side
The blue carbon market remained stable, while thermal coal prices in Shaanxi held firm. Ferrosilicon producers continue to face elevated costs, and some plants in Qinghai have already slipped into losses, prompting a gradual reduction in output as furnaces are taken offline.
Demand Side
Export demand showed limited advantage as prices held steady. Domestically, short-term prices remained relatively weak. With supply continuing to rise and steel mills largely operating around break-even levels, downstream buyers showed little urgency to stock up actively. A recent steel mill tender settled on a delivered, acceptance-bill basis. Traders remained cautious, favoring quick turnarounds and a market-following approach, with a conservative view on the near-term outlook. Some market participants suggested that the cost-driven bullish sentiment from producer shutdowns may be short-lived, with attention shifting toward expectations for the "Silver October" peak season.
Overall View
Ferrosilicon output has adjusted, and the supply-demand imbalance shows signs of easing. As this is the last week before the National Day holiday, prices are expected to remain range-bound. Post-holiday, close attention should be paid to demand performance and supply changes.
Procurement Reminder
With the National Day holiday approaching, customers are advised to plan their procurement in advance to ensure stable supply and avoid potential logistics or market disruptions during the holiday period.
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