[Ferro-Alloys.com]

Since November 2021, the ferrosilicon futures fluctuated frequently, but showed a slow upward trend. Analysts of Ferroalloy.com believed that the probability of sharp drop in the short-term would not be too large. Ferrosilicon futures rose first and then fell this week. The opening price of 2205 main contract was 8874, the highest price was 9500, the lowest price was 8828, the closing price was 9204, the settlement price was 9182, the trading volume was 1190436, and the position was 104147, up 1.52%.

In terms of spot market, the sentiment was still variable, and the downstream buyers ware cautious and had a strong wait-and-see mood. However, due to the small inventory of manufacturers, especially the shortage of standard blocks, and the price of raw material semi-coke increased slightly (the price of small-sized material was about 1530 yuan per ton); as well as export orders performed well and the quotation remained firm. On Tuesday, HBIS group released its ferrosilicon tender volume with 1798 tons in March, and the first round inquiry price was 9000 yuan per ton, lower than the market expectation, waiting for the final tender price to be settled.

Downstream, with the ending of the Winter Olympics and heating season, the steel supply side gradually rebounded, and the terminal demand continued to pick up, the transaction situation of steel mills gradually improved, the market shock strengthened. According to the data of China Iron & Steel Association, in late February 2022, key iron and steel enterprises produced 16.6225 million tons of crude steel, with a daily output of 2.0778 million tons, an increase of 9.42% month on month; The steel inventory was 16.1007 million tons, a decrease of 802800 tons or 4.75% over the previous ten days; 310100 tons less than the same period last year, down 1.89%.

This week, the domestic metal magnesium market fell under pressure due to the weak downstream demand. On Friday, March 4, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 41000-42000 yuan per ton.The market once again entered the state of game deadlock, and there will be more consolidation in the short term to seek the balance between supply and demand.

• [Editor:kangmingfei]