Investor Presentaiton
8
FERROSILICON MARKET REVIEW
Strong demand from steel makers supported prices in 1H 2021
1
2020
Regional key steel producing countries cut
production by 20%-30% YoY from Q2-Q3
2020. FeSi prices under downward pressure.
Steel production recovered faster than
expected. FeSi supply tightened. Freight
costs surged as containers became limited.
2
28th April 2021
China increased the export tax for
FeSi from 20% to 25% to
discourage
power intensive
industrials.
Expected to provide renewed
price support.
3
Q3 2021
Power cuts across China due to
power rationing, combination of
factors including high power
demand, shortage of renewable
power, and reduced coal
availability among others, resulting
in production uncertainty.
Chinese FeSi Production
FeSi
$2,100
USD/mt
$1,900
$1,700
$1,500
$1,300
$1,100
$900
$700
1H 2021 FeSi: $1,586 / mt (+49.5% YoY)
$500
Jan-13
Jan-14
Jan-15
M
Source: Platts, CNFEOL
1
Production
600
('ooos mt)
500
2
400
3
300
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
200
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