[Ferro-Alloys.com]

 

This week, under the influence of the new round of overall weakness of the ferrous metal market, the Ferrosilicon Futures rapidly and sharply declined, which led to a slight decrease in the spot price and suppressed the enterprise's mood to resume production. Currently, the production resumption in the production area was slow, and the downstream demand performance was normal, the market lacked favorable factors, and the wait-and-see mood was aggravated. It was expected that the short-term ferrosilicon market would still be difficult to break the weak situation. However, some people in the industry were optimistic about the the “September-October” peak demand season, and believing the market has the expectation of marginal improvement in demand. Pay attention to the change of supply-demand relationship and the trend of Futures market.

 

In the steel market, affected by factors such as insufficient release of downstream demand in the off-season, China's steel output showed a rapid decline in July. According to the data of the National Bureau of Statistics, the average daily output of crude steel in China in July was 2.6268 million tons, down 13.1% month on month, the lowest level in the same period in nearly three years. Since August, the domestic steel market has been in the alternate stage of the traditional low and peak season. Due to the improvement of the profits of some steel varieties, the enthusiasm of steel mills to resume production has gradually increased. However, due to the continuous extreme high temperature weather, the power supply in the south was tight, and almost all the electric furnace steel mills in some provinces were shut down. In addition, the cost of electricity and scrap steel affected the commencement of steel plants, thus suppressing the demand for ferrosilicon.

 

In terms of metal magnesium, in the third week of August, the domestic magnesium market finally ushered in a bottom rebound, and steadily increased in the early period and the kept strong in the later period. The main reason for the increase was that the exporters concentrated on the purchase of documents, which formed a certain support for 75 # ferrosilicon. However, the terminal demand was limited after all, and the downstream transaction follow-up was cautious in the later part of the week. Whether the magnesium price can continue to rise needed close attention. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24500-25000 yuan per ton.

 

The weekly opening price of 2209 main contract was 8,100, the highest price was 8,184, the lowest price was 7,406, the closing price was 7,584, the settlement price was 7,518, the trading volume was 568,680, and the position was 62,819, down 6.46%.

 

Below are ferrosilicon Futures main contract daily specific performances:

 

Date	Opening price	Highest price	Lowest price	Closing price	Settlement price	Trading volume	Positions	Range
8.15	8100	8184	7970	8062	8066	104034	83600	-0.57%
8.16	8088	8148	7904	7910	8060	108989	72749	-1.93%
8.17	7900	7970	7508	7520	7726	151300	84342	-6.70%
8.18	7600	7686	7480	7498	7614	98720	70805	-2.95%
8.19	7530	7614	7406	7584	7518	105637	62819	-0.39%