[Ferro-Alloys.com]

This week, the ferrosilicon market maintained stable. The Futures market fluctuated after last week's rise. The opening price of 2301 main contract was 8376, the highest price was 8528, the lowest price was 8226, the closing price was 8440, the settlement price was 8448, the trading volume was 997444, and the position was 171839, up 1.22%; On the demand side, the tender price of 72# ferrosilicon of northern representative steel mill was determined to be 8650 CNY/T in November, a month on month decrease of 200 CNY/T, and the purchase volume was 1049 tons, 1101 tons less than that in October. The cautious mood was strong; On the cost side, Shenmu Semi-coke Group issued a notice on November 8: Recently, the supplies of raw materials and coal of semi-coke enterprises continued to be tight and the price rose, leading to serious losses of semi-coke production enterprises. In order to stabilize production and ensure the healthy development of upstream and downstream industrial chains as much as possible, it was decided to implement the guidance price of 1850 CNY/T for medium-sized materials and 1800 CNY/T for small-sized materials (factory tax-included price) from 0:00 on November 9,which brought a certain support for ferrosilicon market; On the supply side, it was reported that enterprises in Qinghai, Ningxia have avoided peak production or reduced production, and the overall output has declined relatively significantly. To sum up, considering cost support, ferrosilicon enterprises had low willingness to sell at a low price, but downstream demand wa still relatively low, especially in the magnesium metal market. The quotation of 75# ferrosilicon has decreased slightly by about 100 CNY/T, and the quotation of 72# ferrosilicon has not changed much temporarily. Pay attention to the changes of supply and demand and the trend of Futures market.

In the downstream, with the cold air coming, the demand for steel, especially in the north, would decline significantly. The pattern of weak supply and demand in the steel market continued, and the market confidence was insufficient. On the other hand, recently, many steel plants have reduced their production due to losses, while infrastructure investment continued to put into practice, and inventories continued to decline. In addition, the heating season was coming, too, under the guidance of environmental protection goals, steel plants may face further production reduction and restriction, and short-term steel prices were still supported. Pay attention to the latest environmental protection policies.

This week, under the supply and demand game, the domestic magnesium metal market was operating stably and weakly due to the weakening of downstream demand. There were few new orders, few deals, and price eased and callback, and the pattern of supply exceeding demand was still in place. The market sentiment was not very optimistic. However, considering that the cost of raw materials was still high, the probability of magnesium price dropping significantly was not high. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24000-24100 CNY/T.

Below are Ferrosilicon Futures main contract daily specific performances:

• [Editor:kangmingfei]