[Ferro-Alloys.com]

HBIS Group's tender price for 75B ferrosilicon in February was 8430 CNY/T, down 320 CNY/T from the previous month, less than expected; The tender quantity was 1466 tons, 633 tons less than that in January. At present, most of the ferrosilicon producing areas maintained normal production, while most of the downstream steel plants were still at the edge of profit and loss, and the resumption of production was stronger than the recovery of demand. The demand for alloys was reduced, and the market transaction was depressed; As for Futures, after the rapid decline, the market was shaken and consolidated. With weak support, the spot price of ferrosilicon was slightly lower than last week, and the pessimism was growing. It was reported that Ningxia area has stopped  6 submerged arc furnaces this week, which was estimated to affect the output of 845 tons/day, and there were also enterprises in other production areas showing willingness to reduce production. It was expected that the ferrosilicon market would remain relatively weak in the absence of positive news. Pay attention to the trend of Futures market and the change of supply-demand relationship.

This week, the ferrosilicon Futures traded at a low level. The opening price of the 2305 main contract was 7890, the highest price was 7990, the lowest price was 7772, the closing price was 7822, the settlement price was 7886, the trading volume was 814360, and the position was 211508, a decrease of 2.25%.

Below are Ferrosilicon Futures main contract daily specific performances:

In terms of downstream steel market, this week, the Futures was rising up this week, and the spot transaction was improved. The market confidence was boosted to some extent, it was expected that the spot price would be driven to run stronger. However, some manufacturers hold a cautious wait-and-see attitude and believed that there was still some uncertainty in the current market demand. According to the statistics of China Iron & Steel Association, in the first ten days of February 2023, the key iron and steel enterprises produced 20.6211 million tons of crude steel, with a daily output of 2.0621 million tons, an increase of 3.77%; The steel inventory of key iron and steel enterprises was 18.0295 million tons, an increase of 1.5425 million tons or 9.36% over the previous ten days; An increase of 3.1428 million tons or 21.11% over the same period last month; An increase of 4.9729 million tons or 38.09% over the end of last year; It increased by 1.1755 million tons or 6.97% over the same period last year.

The cost support was weakening, the downstream demand was weak, and the magnesium metal market continued to decline this week. The manufacturer said that it was difficult to deal, the inventory pressure was gradually increasing, and the price has dropped by 800 CNY/T in a week! On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 21000-21200 CNY/T. Under the stimulation of the lack of positive factors, it was expected that the magnesium market would continue to be weak in the short term. Pay attention to the follow-up of downstream demand.

• [Editor:kangmingfei]