Yurui Metallurgical Material

Ferrosilicon: Additives for High-grade Food in Metallurgy

Ferrosilicon is an iron alloy composed of iron and silicon. Ferrosilicon is a ferrosilicon alloy made of coke, steel scraps, and quartz (or silica) smelted in an electric furnace. Because silicon and oxygen are easily synthesized into silicon dioxide, ferrosilicon is often used as a deoxidizer during steelmaking. At the same time, since SiO2 emits a lot of heat when it is generated, it is also beneficial to increase the temperature of molten steel while deoxidizing. At the same time, ferrosilicon can also be used as a metallurgical additive and is widely used in low-alloy structural steel, spring steel, bearing steel, heat-resistant steel and electrical silicon steel. Ferrosilicon is often used as a reducing agent in the production of ferroalloys and in the chemical industry, and it is also called an additive for high-end steel.

The current situation of the ferrosilicon industry is that the industry concentration has increased, and access is restricted, that is, the production capacity has been stabilized. It is moving towards an industry upgrade and gradually improving its quality and quality after saturation.

After the rapid expansion in 2015, the total amount reached 9.19 million tons to the peak within a few years to the peak of 9.78 million tons in 2019. The historical trend fell year by year after reaching 9,000 yuan/ton in 2017, to the current price of around 5,300 in 2020.

From the perspective of historical supply and demand trends, this year should be a relatively stable stage of supply and demand. From the point of view of price, it is currently at an intermediate level; from the point of view of value, the attribute of ferrosilicon is a metallurgical additive. After the black industry is generally ignited, the current valuation should be worth looking, so the mid-term rebound is worthy of attention.

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