[Ferro-Alloys.com]

Ferrosilicon Futures fell significantly this week, driving market sentiment to become increasingly pessimistic; The spot end was weak stability temporarily, with little price fluctuation and reduced quotation; The supply side was basically normal. The manufacturer arranged multiple orders for production, and the inventory was still tight, but the downstream demand release was slow, the transaction atmosphere was calm, and most of them were cautious; Some steel plants started the steel tender in January: the tender price of 72 # ferrosilicon of a steel plant in Hunan was set at 8650 CNY/T, and the tender price of Xin Steel in January was 8700 CNY/T, with a volume of 1400 tons. It was expected that the short-term price of ferrosilicon would be dominated by shock consolidation. Focus on downstream demand follow-up and Futures market trend.

This week, the opening price of 2303 main contract was 8,450, the highest price was 8,450, the lowest price was 7,942, the closing price was 7,988, the settlement price was 8,012, the trading volume was 803,139, and the position was 165,678, down 6.46%.

Below are Ferrosilicon Futures main contract daily specific performances:

As the downstream steel market, in the traditional off-season, the apparent consumption declined significantly, and there was an expectation that it would continue to weaken, so the transaction atmosphere was cold; With the increase of pre-holiday maintenance in some steel plants at the production end, the output may also fall back. In terms of winter storage, according to the traditional experience, the winter storage period would be around December 20. However, due to the recent rebound in steel prices, which exceeded the expected price of steel traders, and they had a low willingness to store in winter. At present, the winter storage market was relatively flat. On the whole, the short-term steel market tends to operate mainly with weak oscillation.

In the first half of this week, domestic magnesium prices continued to fall under pressure, weakening slightly; Since Wednesday, with the improvement of the transaction, the factory's willingness to support the price has been strengthened, the market mentality has been improved, and the magnesium price has gradually stabilized. It was reported that the magnesium price has fallen below the cost line of some factories, and difficult to reduce again; In addition, stock up before the Spring Festival was expected to form a certain support for the market, but at present, downstream demand follow-up was still weak, and the short-term operation was mostly stable. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 21600-21700 CNY/T.

• [Editor:kangmingfei]