[Ferro-Alloys.com]

The Ferrosilicon Futures rose straightly this week. The opening price of 2301 main contract was 7806, the highest price was 8438, the lowest price was 7678, the closing price was 8438, the settlement price was 8338, the trading volume was 1090417, and the position was 167320, an increase of 7.52%, which greatly boosted the pessimism that has been lingering in the ferrosilicon market recently. In terms of downstream demand, the representative steel mill in the North released its procurement information with the tender volume of 72 # ferrosilicon of 1049 tons, 1101 tons less than that in October, which was significant; However, the tender price of 72 # ferrosilicon in a local steel mill in Fujian was 8640 CNY/T, and the quantity was 3000 tons, which was not significantly reduced. At present, there was no obvious fluctuation at the spot end, maintaining a weak and stable situation, and the production end continued to be stable. In October, the output increased slightly. The progress of steel tender in November was slow, and there were few deals. Under the supply and demand game, the wait-and-see mood was strong.

Below are Ferrosilicon Futures main contract daily specific performances:

In the downstream, since the fourth quarter, the Futures market has declined, and the domestic steel market was in a weak state of operation. Futures rebounded this week, and the decline in the spot market slowed down; The overhaul of the steel mills has been basically completed, the output has gradually recovered, and the demand has been released periodically. The transaction has improved, the inventory has decreased, and the market pessimism has eased. Recently, there have also been intensive commencement of major projects in many parts of the country (507 projects were started in Shijiazhuang City, Hebei Province in the fourth quarter of 2022, with a total investment of 116.66 billion yuan). At the third quarter information conference of China Iron and Steel Association held on October 31, Wang Yingsheng, chief economist of CISA, pointed out that the demand for steel in the real estate and construction industries was recovering; In addition, in the near future, the potential of the infrastructure industry was obvious, and the demand for steel in the short and medium term would rise slowly; The implementation of a series of policies proposed in the report of the 20th National Congress of the Communist Party of China would bring huge steel demand space in the medium and long term.

In terms of magnesium metal, the price continued to decline earlier this week due to insufficient demand follow-up; Later, as the price fell, some users made replenishment as needed, and the transaction was relatively active. At the same time, the factories still had a great support from the cost end, and the magnesium price stopped falling and stabilized. However, it was learned that there were not many orders as a whole, and the magnesium market may be difficult to continue to rebound. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24200-24300 CNY/T.

• [Editor:kangmingfei]