In the beginning of the month, the ferrosilicon spot market continued to operate at a high level, although the rise was slower than before. The manufacturer's sales were good, and the market inventory was not much; After a short fall, the futures hit a new high, breaking through 11000 yuan per ton (up to 11346 yuan per ton), a new high since the listing of the ferrosilicon futures; In addition, with the support of raw material cost, the market mentality was optimistic.
And during the middle of the month,Yulin City, Shaanxi Province issued a notice on ensuring the completion of the control target of energy consumption in 2021. Subsequently, all enterprises involved ferroalloy and metal magnesium in Zhongwei region of Ningxia and Fugu region of Shaanxi stopped production. On September 22 and 23, the 2201 contract of ferrosilicon futures rose by the daily trading limit, with a highest price of 14444 yuan per ton, reaching another record high! The spot price immediately rose sharply by more than 5000 yuan per ton, 75# ferrosilicon price broke 21000 yuan per ton, 72# ferrosilicon price was mostly about 17000-18000 yuan per ton, the market was slightly chaotic, and most manufacturers were reluctant to offer, so there was a strong wait-and-see mood. At the same time, the price of upstream raw material semi-coke also rose sharply, and the procurement was difficult due to the further contraction of production, tight supply.
By the last week of September, the spot market was stable, with 75# quotation of about 19000-21000 yuan per ton and 72# quotation of about 16000-18000 yuan per ton; HBIS Group released the bidding information of ferrosilicon 75B in October, with a volume of 3126 tons (a month on month increase of 391 tons) and a price of 16000 yuan per ton (a month on month increase of 5300 yuan per ton); Some enterprises in Ningxia resumed production, but the scope of peak avoiding production was expanded, and the futures continued to rise after the limit rose again on September 28. In September, the opening price of the main contract of ferrosilicon futures 2201 was 10450, the highest price was 17038, the lowest price was 10286, the closing price was 17024, the settlement price was 16144, the trading volume was 12841940, and the position was 106088, an increase of 62.63%.
As for exports, according to data of China Customs, in August 2021, China exported 68827.706 tons of ferrosilicon (containing by weight more than 55% of silicon), an increase of 21.29% month on month and 389.54% year-on-year. The strong follow-up of overseas demand has also injected a booster into the market.
In the downstream, the domestic steel market has entered the traditional peak season, the production end strictly implemented restriction policy, and the supply was tighter and tighter, the steel mills increased prices intensively and had a strong reluctance to sell, and the market mentality was more optimistic.
With the support of ferrosilicon and coal and few spot, the domestic metal magnesium market first restrained and then rose in September! At the beginning of the month, affected by the slowdown of procurement, the magnesium price fell slightly. Soon, with the increase of trading volume, and the always tightened supply, the magnesium price stopped falling and rebounded, rising steadily, with a price of ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was over 31000 yuan per ton. In mid-September, the shutdown in fugu area also directly led to the further reduction of metal magnesium supply, the magnesium price exceeded 70000 yuan per ton! However, due to limited transactions and Fugu manufacturers' expectation of resumption of production, the magnesium price fell and consolidated. At the end of the month, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was over 52000 yuan per ton!