[Ferro-Alloys.com] 

[Spot Market] In the increasingly strong atmosphere of the Spring Festival, the domestic ferrosilicon market showed a slightly weak operation situation in the early part of this week, most manufacturers are still in tight spot, but the downstream transaction has weakened, and more and more logistics has been suspended, and some enterprises have slightly adjusted their quotations. At the beginning of the week, enterprises in Baotou area of Inner Mongolia quoted a price of 6800 yuan per ton for 72# ferrosilicon. However, a notice of electricity price adjustment in Inner Mongolia on Thursday led to the daily limit rise of ferrosilicon futures, which may become a strong support for the rebound of the spot market. As for the trend after the festival, many of the industry participants is optimistic, waiting for the market to further clarify.

[Ferrosilicon Futures 2105 Contract] Opening price of ferrosilicon futures 2105 contract of this week was 6,748, highest price was 7,072, lowest price was 6,546, closing price was 6,740 and the settlement price was 6,856. The trading volumes were 1,347,152 and the positions were 128,107.

[Steel Market] As the Spring Festival approaches, steel demand continues to weaken and inventory increases month on month. According to data of CISA, in late January, the social inventory of 5 major varieties of steel in 20 cities was 9.73 million tons, an increase of 1.38 million tons or 16.5% over the previous ten days, showing a rapid rising trend; 2.43 million tons or 33.3% over the beginning of the year, 1.61 million tons or 19.8% over the same period of last year. It is expected that the stable operation will be maintained before the festival, and the steel market will probably recover and consolidate after the festival, driven by downstream construction and demand.

[Magnesium Market] Logistics has been suspended, market transactions weakened, it is expected to maintain a stable position before the year. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 14000-14100 yuan per ton.