2024 Ferrosilicon price Analysis
Because of the situation in the Red Sea, many shipping companies around the world are avoiding the Red Sea and sailing around the Cape of Good Hope in Africa.
The number of transportation days has increased, and the container freight rate has increased significantly, which has affected the transportation of oil and gas and dry bulk cargo trade, and the logistics cost of steel and black bulk commodities has increased.
Among them, black iron ore rose sharply, driving up the price of ferrosilicon.
China's ferrosilicon export tariffs in 2024
The Customs Tariff Commission of The State Council has released a tariff adjustment plan for 2024. From January 1, 2024, the import and export tariffs of some commodities will be adjusted, among which the export tariff of ferrosilicon will remain unchanged at 25%.
Iron silicon price Outlook for early 2024
The price of ferrosilicon is expected to rise.
The price of ferrosilicon raw materials is stable and is expected to have little impact on ferrosilicon prices in early 2024.
Production is expected to fall as ferrosilicon producers generally shut down for about 20 days due to the Chinese Lunar New Year. A 6.2-magnitude earthquake hit Qinghai and Gansu provinces, destroying water, electricity, transportation and other infrastructure. Gansu and Qinghai are important producing areas of ferrosilicon in China. Due to the priority of ensuring people's livelihood, the production of ferrosilicon will be significantly reduced.
Due to the tense situation in the Red Sea, ships circumnavigate the Cape of Good Hope, and sea freight rates have risen sharply.
In summary, in early 2024, the price of ferrosilicon is expected to rise steadily.