No significant impact.

1. Regarding the recent plunge of ferrosilicon, the market generally believes that the price of ferrosilicon quickly returned to a weak realistic benchmark due to less than expected demand. In the early stage, affected by the resumption of work and production by some steel companies in December, the demand for furnace materials including ferrosilicon was boosted to a certain extent, and the market stabilized and stopped falling. Although the recent resumption of downstream production has been realized, due to the suppression of terminal demand, the resumption of steel production is not as good as expected, and the logic of boosting ferrosilicon demand has been impacted.

2. From a supply perspective, it is currently relatively stable. Data show that the operating rate of 136 independent ferrosilicon companies dropped slightly by 0.64% to 48.28% last week, and the average daily output decreased by 60 tons. Both of them stopped increasing for eight consecutive years, and there has been no major change in the supply of ferrosilicon.