[Ferro-Alloys.com]  [Spot Market] There was continuous news of production cuts or scale back spread from main producing areas and resulted in the ferrosilicon supplies further declined. In some areas, the spots were getting tighter which may be helpful for the price increasing. But on the other hand, the traders still wanted to force the prices down, so where it would go needed to be further followed.

[Steel Mills Tender] This week, the tender notices of steel mills released in succession, with the volumes up and the prices down as a whole. The tender price decreased by 50 - 150 RMB for now. But after all, steel mills tender would release demand, so the factories got some comfort.

[Ferrosilicon Futures 2001 Contract] The 2001 ferrosilicon contract price on ZCE opened at 5812, closed at 5740, and the highest price was 5814, the lowest price was 5720, the settlement price was 5746. The trading volumes were 229 thousand tons and the position was 104918.

[Steel] As of December 2, the steel social inventory declined in the seven consecutive week, to 7638.2 thousand tons. Low inventories would be helpful for the price increasing. Steel mills kept the price up and were optimistic on the future market. But after a round of increasing in November, the steel price would be under upward pressure. At present, the volumes slowed with soft demand, and the price may be adjusted in December.

Meanwhile, it was the season for stocking now. Although currently the traders are not that willingly to preserve, in case the winter storage started, the market may rebound again.

[Magnesium Metal] Currently the magnesium metal market is oversupplied, with the demand soft and the price down. On the other hand, the price of magnesium metal was closed to the cost line so it was not likely to continue to slide sharply.

• [Editor:kangmingfei]