This week, the domestic ferrosilicon market continued to be weak, the Futures fell sharply, impacting the spot market, and the spot price continued to fall; On Monday, one big plant in Ningxia shut down three furnaces (two 40500KVA and one 16500KVA), which was expected to affect the daily output of more than 200 tons, and the other five furnaces would avoid peak production. At present, the daily output of the plant was 450 tons; The cumulative impact of the production reduction right now was estimated to be more than 1000 tons per day. In July, the price of steel tender slumped, the weak situation was difficult to change, and the steel tender had been basically finished, the downstream procurement transactions were further depressed, the market confidence was poor, and the bearish sentiment was strong. However, the analysts of Ferro-Alloys.com believed that there was still a certain small rebound space. Pay attention to supply and demand changes and Futures trends.

In terms of downstream, according to the latest data of CISA, in the first ten days of July 2022, the key steel enterprises produced a total of 20.7476 million tons of crude steel, with a daily output of 2.0748 million tons, a decrease of 1.98% compared with the previous ten days; At the end of early-July, the steel inventory was 18.0479 million tons, an increase of 1.0993 million tons or 6.49% over the previous ten days; 499600 tons less than the same period last month, a decrease of 2.69%; An increase of 6.751 million tons over the beginning of the year, an increase of 59.76%; Compared with the same period last year, it increased by 3.9906 million tons, an increase of 28.39%. In the short term, most steel mills were still in a state of loss, the supply side operated at a low level, and the weak situation of supply and demand continued; However, in the long run, under the background of gradual recovery of domestic demand and output reduction trend, the supply-demand relationship was expected to improve, while raw material prices entered a downward cycle, cost pressure was reduced, and the profitability of the steel industry was expected to be repaired.

In terms of metal magnesium, under the dual effect of continuous high output and weak demand, the quotation of magnesium ingots was further weakened this week, and foreign demand was also weak, some factories were forced to make price concessions for shipments under pressure. However, the transaction was still difficult to be optimistic, and it was expected that the weak consolidation and pressure operation would continue in the short term. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24200-24500 yuan per ton.

The weekly opening price of 2209 main contract was 7,838, the highest price was 7,994, the lowest price was 7,070, the closing price was 7,196, the settlement price was 7,194, the trading volume was 891,968, and the position was 178,994, down 11.01%.

Below are ferrosilicon Futures main contract daily specific performances:

• [Editor:kangmingfei]