Haihao Group brings you a weekly review of the raw material market
Last week witnessed various fluctuations in the raw materials market. Haihao Group closely monitored these changes to stay informed and adapt to market dynamics.
Iron ore prices experienced slight fluctuations during the week. While prices in the overseas market were higher than those at ports, overall, they saw a slight increase. Although port prices slightly declined and port iron ore inventories continued to rise, most steel companies maintained a strategy of low inventory. Some even sold a small amount of long-term contract resources due to fewer new orders for finished materials. However, as the downward trend in prices slowed, steel companies with low inventories slightly increased their purchases, leading to a minor uptick in market transactions. With reduced overall losses for steel companies, production is expected to resume in March, potentially causing iron ore prices to first fall and then rise.
The domestic metallurgical coke market remained stable last week, with both supply and demand declining. The operating rates of blast furnaces in 201 steel companies decreased by 0.3 percentage points, while the capacity utilization rate of 200 independent coke enterprises dropped by 2.19 percentage points. Inventories in the coke industry continued to decline, decreasing by 108,000 tons last week, or 1.63%. Inventory reductions were also seen in 100 coke enterprises, decreasing by 96,000 tons, or 16.8%. Meanwhile, 80 steel companies saw their coke inventory days decrease by 0.2 days to 11.3 days. With continuous price declines in finished products, some steel companies showed intention to further reduce the price of metallurgical coke. However, major coke producers in Shanxi, Hebei, Shandong, and Henan, regions known for their representative coke enterprises, expressed their refusal to accept price cuts. It is anticipated that the domestic metallurgical coke market will operate weakly stable in the near term.
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Coking coal prices were stable with a slight downward trend last week, with online auction prices mainly decreasing and some auctions failing. Prices for low-sulfur coking coal in Anze, Linfen, Shanxi Province, ranged from 2,100 yuan/ton to 2,150 yuan/ton, marking a decrease of 250 yuan/ton and a cumulative decline of 400 yuan/ton since the Spring Festival. Prices for S1 coking coal in Liulin dropped by 250 yuan/ton to 2,050 yuan/ton. Prices in Hebei Province fell by 30 yuan/ton to 130 yuan/ton. In Shaanxi, prices for gas coal remained stable, while in Inner Mongolia, prices for coking coal were stable with a slight decline in some resources. With widespread losses among coke enterprises and significant production restrictions, enthusiasm for coking coal purchases remained low. The evident decline in prices from online coking coal auctions had an adverse impact on the market. It is expected that coking coal prices will remain stable with a slight downward trend in the near term.
Prices for various types of ferroalloys remained stable with slight increases last week. Silicon prices remained stable, with bidding prices around 6,750 yuan/ton. In major production areas such as Qinghai, Ningxia, and Shaanxi, settlement electricity prices remained unchanged in February. Prices for anthracite fines decreased by 30 yuan/ton to 50 yuan/ton, leading to a continued downward shift in silicon production costs. Currently, silicon futures prices fluctuate downward, with low-priced transactions dominating the market. It is anticipated that the silicon market will operate weakly stable in the near term. Prices for silicomanganese remained stable with a slight decrease, with spot prices around 5,900 yuan/ton. In March, Maanshan Iron and Steel Group set the procurement price for silicomanganese at 6,300 yuan/ton, down 150 yuan/ton from February. Prices for manganese ore increased by 0.17 to 0.25 USD/tonnage. Chemical coke prices fell by 80 yuan/ton, while transportation costs in some regions decreased by 10 yuan/ton to 30 yuan/ton. Settlement electricity prices for major production areas in Inner Mongolia have yet to be announced. Despite most enterprises in production areas experiencing losses, overall market inventories remain high, and steel companies’ procurement prices for March are generally low. It is expected that the silicomanganese market will operate weakly stable in the near term.
HAIHAO GROUP
High-carbon ferrochrome prices remained stable overall, with transaction prices in northern markets ranging from 8,550 yuan/50 basic tons to 8,600 yuan/50 basic tons. Port chrome ore prices saw a slight increase of 0.5 to 1 yuan/tonnage, leading to a slight increase in costs. With bidding for March nearing completion, most high-carbon ferrochrome producers prioritized delivering orders, while some manufacturers scheduled orders until early April. It is anticipated that the high-carbon ferrochrome market will operate stably with a slight strengthening trend in the near term.
Haihao Group remains vigilant and responsive to changes in the raw materials market, ensuring adaptability and competitiveness in the industry.