On the downstream side, according to the data of China Iron & Steel Association, in the middle of November 2022, the key iron and steel enterprises produced 20.0197 million tons of crude steel, with a daily output of 2.002 million tons, an increase of 0.76% month on month; The steel inventory of key iron and steel enterprises was 17.301 million tons, an increase of 578300 tons or 3.46% over the previous decade; An increase of 826700 tons or 5.02% over the end of last month; 418300 tons or 2.36% less than the same ten day of last month; In the middle of November, the social stock of five major varieties of steel in 21 cities was 7.51 million tons, a month on month decrease of 300000 tons, or 3.8%. The stock continued to decline, with a narrow decline. At present, the demand side performance remained weak. In addition, the transportation was blocked, the overall trading was not smooth, the actual shipment situation was less than expected, the spot price was easy to fall but difficult to rise, and the mood was pessimistic and cautious, mostly wait-and-see. However, it was understood that the current inventory pressure was not great, so the willingness to hold the price was strong, and the quotation was mainly stable. In the short term, we still need to continue to pay attention to the actual demand performance.

Affected by the slow release of downstream demand, the transaction performance was under-performing. This week, the magnesium market continued to operate under pressure, with the price dropping about 500-600 CNY/T compared with last week. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 23000 CNY/T. Under the market pattern of oversupply, it was hard to be optimistic about the magnesium market in the short term. However, at present, the profits of the factories were weak and even there was a loss, it was expected that further decline would be limited. Focus on demand follow-up.