[Ferrosilicon Bidding] In consideration of many factors, the industry is generally optimistic about steel bidding in December. According to market news, in the first half of December 2020, the bidding price of 75-B ferrosilicon was 6540 yuan per ton, up 170 yuan per ton month on month.
[Spot Market] This week, the ferrosilicon market is still relatively stable, with tight spot production (some enterprises in the main production areas are "no goods" or "no quotation"), strong raw material costs (Shenmu Semi-coke group issued a notice again, suggesting that the small size of semi-coke should be priced at 780 yuan per ton ex-factory including tax), and the current stable downstream demand (at present, the operating rate and output of steel enterprises have little change, and the inventory of metal magnesium plants stayed low), some ferrosilicon manufacturers' willingness to stand up for price has been further strengthened, and their quotations continue to rise this week. However, some manufacturers are still in a wait-and-see state, and the price has not changed much compared with the previous weeks, and the current quotations of 72# ferrosilicon in main production areas are 5750-5950 yuan per ton. Pay attention to the new round of steel bidding, supply and demand relationship changes, futures trading and delivery warehouse inventory changes.
[Ferrosilicon Futures 2101 Contract] Opening price of ferrosilicon futures 2101 contract of this week was 6,172, highest price was 6,320, lowest price was 6,050, closing price was 6,116 and the settlement price was 6,216. The trading volumes were 787,969 and the positions were 98,165.
[Steel Market] The weather is getting colder and the construction progress is affected, the demand for steel terminal in North China has decreased, and the transaction performance was poor, with the declined futures market and the funds pressure, some steel mills have strong willingness to get deals. The spot price of steel this week has declined and weakened. The market mood is mainly cautious. It is expected that the steel market would still operate in a weak vibration in the short term.
[Metal Magnesium Market] Since the middle of November, the price of magnesium has risen by more than 1000 yuan per ton until this week. At present, there is no pressure on the inventory of magnesium plants. Although the turnover in the later part of this week has slowed down slightly, the production cost of magnesium ingot remains high and it may be consolidated in the short term. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 13500-13600 yuan per ton.