Since January, more arc furnaces have been put into operation in Ningxia, Shaanxi, Gansu and other places, and the new production would increase next; The operating rate and output of ferrosilicon showed an upward trend. As for the downstream, KISC took the lead in releasing the tender price of 75B ferrosilicon in February, which was 9050 yuan per ton, down 20 yuan per ton month on month compared with January, and 900 tons of public bidding. It’s expected that more steel mills would release procurement information next week and the overall demand performance was good. Many ferrosilicon mills said that there was no spot or shipping pressure at present. And the quotation was firm and rising slightly (some manufacturers suspend external quotation). It’s only 10 days before the Spring Festival, some enterprises have begun to turn on the new-year and vacation mode. The overall market would not change much next week. Many people were relatively optimistic about the market after the Spring Festival, but they still need to pay close attention to the changes in supply and demand and policy trends.

The opening price of 2205 main contract of ferrosilicon futures this week was 9162, the highest price was 9366, the lowest price was 8792, the closing price was 9018, the settlement price was 9090, the trading volume was 1338100, and the position was 113088, a decrease of 1.70%.

Since January, the domestic steel market has fluctuated in a narrow range and strengthened steadily. The winter storage of steel mills has basically been implemented, and the performance is higher than expected. However, as the Spring Festival is getting closer and closer, the terminals are shutting down one after another, the downstream demand is gradually declining, the transaction is cold, and the accumulation of storage is gradually accelerating. At the same time, steel mills in many places are scheduled to stop production for maintenance during the Spring Festival, the output has also declined, and the supply and demand have both decreased. In the short term, the steel market will still be dominated by shock operation.

Recently, it is common for the domestic metal magnesium market to rise and fall under the game between supply and demand. Last week, due to the reduction of downstream procurement, the price entered the downward track. With the continuous decline of price, the demand side concentrated on the preparation of goods before the festival, and the transactions increased. Together with the policy news of Shaanxi, the magnesium price stopped falling and rebounded in the middle and late of this week. On Friday, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 44000-45000 yuan per ton.