[Ferro-Alloys.com]

HBIS Group's tender price for ferrosilicon 72# was 7580 CNY/T in May, a decrease of 300 CNY/T compared to the previous month, with a volume of 2500 tons. Downstream demand has not yet rebounded, and this week's ferrosilicon quotation has slightly declined again. It was estimated that most main production areas have experienced varying degrees of losses, and manufacturers have low willingness to start production and weak confidence. Without the support of strong and favorable factors, the short-term ferrosilicon market still tended to consolidate and operate in a weak manner.

The weekly opening price of the 2306 main contract was 7,350, with a highest price of 7,372, a lowest price of 7,160, a closing price of 7,314, a settlement price of 7,298, a trading volume of 350,987, and a position of 50,898, up 1.16%.

Below are Ferrosilicon Futures main contract daily specific performances:

On the downstream side, earlier this week, driven by relevant documents from Tangshan, ferrous futures saw a significant increase, demand released, transaction volume increased, and steel prices rebounded. However, there has been no substantial change in the supply-demand relationship, and the steel market lacked upward support. As a result, the steel market fell in a weak position. As of May 12th, the lowest price of Futures was 3562 CNY/T, breaking a new six-month low. Currently, steel mills continued to reduce production and supply has been reduced; On the demand side, although some institutions have predicted an increase in the purchase volume of construction steel in May, there was still hope of a recovery. However, with the traditional off-season approaching, downstream demand was still expected to weaken, and the weak market situation may be difficult to reverse in the short term.

In terms of metal magnesium, due to the policy of phasing out and dismantling the semi-coke devices in the Fugu region, the domestic magnesium price has risen significantly again this week, reaching a maximum of 30000 CNY/T. But downstream demand was relatively weak, supply and demand contradictions were still ongoing, and high prices were difficult to deal. Some factories have lowered their prices in order. On Friday, May 12th, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly about 27000 CNY/T. Industry insiders have stated that recent fluctuations in magnesium prices have been frequent and significant, and market quotations were relatively chaotic, which was not conducive to the health of the magnesium market. They call on practitioners to unite and promote the stable development of magnesium prices in a reasonable space.

• [Editor:kangmingfei]