[Ferro-Alloys.com]

Under the expectation of production reduction and restriction, the domestic ferrosilicon market stopped falling and rebounded in the early stage of this week, and the futures performed well and rose continuously; And the spot market gradually came out of the depressed conditions, the inquiry and transaction improved, the inventory has decreased (most manufacturers now were out of stock), the quotation has increased slightly, and the market sentiment has been boosted. However, on Friday, the futures price plummeted. Although the spot price remained stable for the time being, some people in the industry said it was not optimistic about the later trend; Considering the production cost pressure of ferrosilicon, it is unlikely that the spot price would drop significantly. Pay close attention to the changes of supply and demand and the new round of steel bidding.

The opening price of 2201 main contract of ferrosilicon futures this week was 8,466, the highest price was 9,644, the lowest price was 8,420, the closing price was 8,666, the settlement price was 8,904, the trading volume was 762,876, and the position was 73,266, an decrease of 4.46%.

Below are ferrosilicon futures main contract 2201 daily specific performances of this week:

Downstream, Tangshan region once again issued the emergency response for heavily polluted weather, involving 22 steel enterprises. According to the data of China Iron & Steel Association, in mid November, the daily crude steel output of key iron and steel enterprises was 1.7628 million tons, down 2.04% month on month; the steel inventory of key iron and steel enterprises was 13.9272 million tons, a month on month increase of 3.11%, an increase of 8.43% over the end of last month, an increase of 19.84% over the beginning of the year and an increase of 10.8% over the same period last year; In mid November, the social inventory of five major varieties of steel in 20 cities was 9.03 million tons, a month on month decrease of 370000 tons, a decrease of 3.9%. Although driven by the futures market, domestic steel prices have generally risen recently, whether they can last depends on terminal demand, which should not be overly optimistic.

This week, the domestic metal magnesium market was restrained first and then raised. Although the inventory pressure of the factory was not large, the downstream procurement slowed down, the demand was weak, and the transaction was not ideal. The price quickly fell back to 2000 yuan per ton on Monday. With the price falling, some users began to replenish, and the price of raw material ferrosilicon rose again. On Thursday, the price of magnesium ingot stopped falling and rebounded. On Friday, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 36000 yuan per ton,It’s expected that the stable operation would be the main theme in the short term.

• [Editor:kangmingfei]