Ferrosilicon (6672, -28.00, -0.42%) :
On Wednesday, the futures price of ferrosilicon fluctuated and strengthened. The main contract closed at 5,258 CNY per ton, up 1.19% month-on-month. The open interest decreased by 14,617 lots to 121,400 lots month-on-month. Yesterday, the overall trend of the black metal sector was relatively strong. Coking coal rose by more than 7% and coke by more than 5%, driving the price center of ferrosilicon upward. We believe that the leading rise in coking coal has boosted market sentiment, and the strengthened cost support is also a major factor contributing to the upward trend in ferrosilicon prices. However, from a fundamental perspective, the marginal changes are limited. The weekly output of ferrosilicon continued to decline, maintaining a week-on-week decrease of around 5%. But in some regions, there are also signs of resumption of production in the future, and the supply and demand situation has not continued to tighten. Overall, in the short term, ferrosilicon may have some support under the boost of market sentiment, but the fundamental driving force is limited. In the short term, ferrosilicon may still mainly follow the fluctuations of the black sector.