[Expressed by www.ferro-alloys.cn]

From the beginning of this year to the eve of Chinese New Year, haze assaulted time after time. Affected by environmental factors, numerous cored wire manufacturers operates on and off and in a majority of time, they were in production limitation or even halt production. For this reason, the rate of operation was low.

On the safe side, most of cored wire manufacturers prepared some inventories respectively more or less before the Chinese New Year so that the situation that the demand for cored wire products and the raw materials exceeds supply after the holiday of Spring Festival like what occurred in the past years was avoided effectively and the market was calm.

After the holiday of Spring Festival, the downstream demand did not increase for a while and there were many inquiries but few orders placed. Therefore, the actual trading volume of cored wire and raw materials did not increase significantly. Silicon calcium cored wire, metal calcium type cored wire, solid pure calcium cored wire, nodularizer cored wire and various raw materials operated stably. In terms of price, except cold rolled strip steel vibrated slightly and silicon calcium alloy reduced, there was no large fluctuation as a whole and the market trend was very stable.

From Early to middle March, because the environmental protection departments intensified law enforcement efforts with strict control during the period of two sessions, many steel and iron enterprises and raw material manufacturers in North China were in production limitation, which resulted in market shortage, the prices of raw materials of cored wire such as cold rolled strip steel, metal calcium and silicon calcium alloy rose in succession. In late March, as air quality has improved in North China, environmental inspections relaxed and most raw material producers resumed normal operations, the prices of raw materials of cored wire stabilized basically, of which the price of cold rolled strip steel fell. However, with regular customers, stable consumption of domestic steel and iron enterprises, downstream demand and quantity of order as well as basically balanced relation between market demand and supply, cored wire manufacturers maintain a steady state of mind and take a wait-and-see attitude to the market, the offers have not been adjusted all the time. Therefore, the prices of silicon calcium cored wire, nodularizer cored wire, solid core pure calcium wire, seamless metal calcium wire, ferro calcium cored wire, carbon cored wire and other cored wire products have not changed obviously with price fluctuation of the raw materials.

In April, the prices of raw materials of cored wire are not so stable and fluctuated repeatedly, of which the prices of metal calcium silk and metal crude calcium fell at the beginning of this month, rebounded in the midmonth and stabilized later this month, that of cold rolled strip steel rose continually by approximately 180 yuan per ton comparing with that at the end of the last month. In early and middle of this month, affected by environmental factors, reduction of prices of raw materials and adjustment of rate of value-added tax as well as drop of downstream demand and insufficiency of trading volume, some cored wire manufacturers reduced their offers of silicon calcium cored, solid pure calcium cored wire and nodularizer cored wire in succession, Soon after, the prices stabilized and have not changed any more by far.

Except silicon calcium cored wire, solid pure calcium cored wire and nodularizer cored wire, comparing with the prices at the end of last month, there is no obvious fluctuation in the prices of other cored wire products. There is few inquiries from new customers, but with regular customers and partners with stable demand, most of cored wire manufacturers are normal in order receiving, operation and delivery so that against the frequent price fluctuation of raw materials, they are in no hurry to adjust their offers significantly and operate stably with the attitude of wait-and-see to the market. For this reason, comparing with the end of March, there was no obvious fluctuation in the prices of various cored wire products.

In early May, the prices of some of raw materials of cored wire fluctuated, of which ferrotitanium and silicon calcium alloys rose, while cold rolled strip steel dropped slightly by about 20 yuan per ton in various types. Because the fluctuation range is too small to affect the prices of downstream cored wire products, most of cored wire manufacturers mainly focus on supply for regular customers, generally speaking, the downstream demand is stable and the manufacturers are normal in order receiving, operation and delivery. For this reason, except the mainstream transaction price of ferrotitanium cored wire rose, most of the manufacturers have not adjusted their offers significantly and various cored wire products are still in stable operation with no obvious fluctuation in mainstream transaction prices.

In June, price fluctuation of cold rolled strip steel was frequent, which reduced by 50 yuan per ton or so in early June and continued reducing by 140 to 200 yuan per ton in the midmonth due to price fall of ferro ore, coke and other materials. In late June, in some areas of Hebei Province, in order to intensify environmental protection and improve air quality, measures such as limited production, suspended production and shifting production were implemented strictly. As a result, the operation rate of cold rolled strip steel dropped and the goods in stock was insufficient. Additionally, the demand of downstream cored wire manufacturers is stable. Therefore, the price of cold rolled strip steel rebounded strongly by 140 yuan per ton or so. The prices of other raw materials such as metal calcium wire, silicon calcium alloy and ferroboron were relatively stable with no significant fluctuation.

Cored wire market was not impacted by frequent price fluctuation and was calm on the whole. Except slight rise of the price of carbon cored wire and drop of the price of nodularizer cored wire due to poor demand, the prices of cored wire products were stable with no obvious fluctuation. The downstream demand for silicon calcium cored wire, carbon cored wire, solid pure calcium cored wire and seamless metal calcium cored wire is stable. Most of manufacturers mainly supply for their regular customers with stable order quantity. There were also a few inquiries from new customers. The manufacturers are normal in order receiving, production and delivery.

(To be continued)