[Ferro-Alloys.com]

This week, the domestic ferrosilicon market continued to operate at a high level, the spot supply was normally tight, and the downstream demand and overseas demand were acceptable (HBIS Group released its ferrosilicon 72# bidding price at 9200 yuan per ton in August, which was 500 yuan per ton more than last month and the bidding volume was 3100 tons, an increase of 1040 tons than July). The cost side was supported by the rising of semi-coke price, the futures remained high and rising slightly, the ferrosilicon manufacturers had good confidence and the quotation was strong, According to Ferro-alloys.com, the quotation of 72# ferrosilicon in the main production areas this week was about 8800-8900 yuan per ton, and the quotation of 75# ferrosilicon was about 9300 yuan per ton, and the short-term expectation is still optimistic.

As for the downstream steel mills, considering the impact of the production restriction policy, the price of raw materials has fallen recently, the output of crude steel has decreased slightly, and the demand side has recovered, but the overall situation was still relatively weak, the inventory continued to decline slightly, and it’s expected that the steel market would still fluctuate in the short term.

According to data of China Iron and Steel Association, in early August 2021, key iron and steel enterprises produced 20.4394 million tons of crude steel, with a daily output of 2.0439 million tons, a month on month decrease of 2.97% and a year-on-year decrease of 4.40%; In terms of inventory, in early August, the social inventory of five major varieties of steel in 20 cities was 11.91 million tons, a month on month decrease of 120000 tons, a decrease of 1.0%; An increase of 4.61 million tons over the beginning of the year, an increase of 63.2%; A decrease of 500000 tons or 4.0% over the same period last year.

And the domestic metal magnesium market has made great progress this week! The spot was in short supply, the price of raw materials, coal and ferrosilicon was high, the demand followed up, the overall transaction was good, and the overseas demand was also acceptable. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was more than 22400-22500 yuan per ton. a 13-year record high! And the price was thought to continue to climb in the short term!

Opening price of ferrosilicon futures 2109 contract of this week was 8934, highest price was 9198, lowest price was 8830, closing price was 9180 and the settlement price was 9066. The trading volumes were 967917 and the positions were 130984.