ASIAN FERRO-ALLOYS CONF: Big influence of futures market is ‘double-edged sword’ for ferro-silicon – speaker

The development of the futures market in China has been a “double-edged sword” for the domestic ferro-silicon industry, leading to more flexibility for market participants and wilder price swings than prior to its existence, according to one speaker at Fastmarkets’ Asian Ferro-alloys Conference in Hong Kong this week.

Ferro-silicon contracts, launched on the Zhengzhou Commodity Exchange (ZCE) in August 2014, have a regular influence on spot off-exchange prices, and this has made the market more complex, one China-based speaker explained.
“Since futures joined the sales model, things got more complicated,” Lucy Wang, general manager of Beijing LY Metals and Mining Co, told delegates during a roundtable discussion on Tuesday March 12.

“Plants now don’t just sell to middle companies and end...


Fleur Ritzema

March 12, 2019

07:25 GMT

Hong Kong