The functions of ferroalloys mainly include the following aspects:
Price discovery: The ferroalloy futures market can reflect the market's expectations for the future price of ferroalloys through the trading behavior of many participants, providing important price references for manufacturers, traders and investors.
Hedging: Ferroalloy futures have the function of hedging. For ferroalloy manufacturers and consumers, by hedging in the futures market, they can lock in costs or profits and reduce operating risks.
Liquidity: Ferroalloy futures have high liquidity, which means that investors can buy or sell contracts more conveniently, thereby realizing asset allocation and risk management.
Deoxidizer: In the steelmaking process, ferroalloys can be used as deoxidizers to remove oxygen from molten steel. Some ferroalloys can also remove other impurities in steel such as sulfur and nitrogen.
Alloy additives: According to the composition requirements of the steel grade, ferroalloys can be added to steel to improve the performance of steel, such as improving hardness, toughness and wear resistance.
Inoculant: Added into molten iron before casting to improve the crystal structure of the casting.
Reducing agent: In the metallurgical process, ferroalloys can be used as reducing agents and deoxidizers to improve metallurgical reactions, increase production and reduce costs.
Electronic industry: Elements such as chromium, cobalt, and vanadium in ferroalloys are important raw materials for electronic components, and can be used to manufacture high-temperature, high-strength, high-hardness alloys, magnetic materials, electric heating alloys, etc.
