[Ferro-Alloys.com]

The overall weakness of the ferrous metal has driven the Ferrosilicon Futures market to break the annual low again. The progress of the steel tender in June was proceeding slowly, and industry insiders were not over-hopeful about it. The tender price of new round of 72# ferrosilicon (standard block) by Minyuan Steel Group was set at 7350 CNY/T; The metal magnesium market has also been continuously declining and operating in a weak position; The price of raw material semi-coke reduced by 50 CNY/T, and the quotation for small-sized materials was around 1250-1300 CNY/T; It was learned that the current high inventory in the delivery warehouse may have a certain impact on the spot prices in the near future. Under so many negative factors, manufacturers' confidence was insufficient, and their production enthusiasm for was further reduced. It was expected that the short-term ferrosilicon market would still operate in a weak trend.

This week, the opening price of the 2307 contract was 7506, with a highest price of 7534, a lowest price of 7146, a closing price of 7226, a settlement price of 7218, a trading volume of 751537, and a position of 218714, a decrease of 4.29%.

Below are Ferrosilicon Futures main contract daily specific performances:

Downstream, ferrous metal Futures fluctuated and declined, with seasonal off-season approaching, weak demand, weak transactions, spot prices falling, and there was a high expectation of further decline in the short term, leading to a more pessimistic sentiment. According to data from CISA, in mid May 2023, key enterprises produced a total of 22.4546 million tons of crude steel, with a daily output of 2.2455 million tons, a decrease of 0.24% compared to the previous month; In mid May, the steel inventory of key steel enterprises was 16.2646 million tons, a decrease of 1.3467 million tons or 7.65% compared to the previous ten days; A decrease of 2.2765 million tons or 12.28% compared to the same period last month; An increase of 3.1902 million tons or 24.40% compared to the end of last year; In mid May, the social inventory of 5 major varieties of steel in 21 cities reached 10.94 million tons, a decrease of 360000 tons compared to the previous month, a decrease of 3.2%, and an increase of 3.42 million tons or 45.5% compared to the beginning of the year.

The relevant policy news has weakened its impact on the market, while also being affected by the continued weakness of downstream demand. Although some manufacturers have stopped production, they cannot compete with the scarcity of inquiries and light transactions. This week, the domestic magnesium metal market continued to operate in a weak position, with quotations dropping from 24500-25000 CNY/T at the beginning of the week to around 22500-23000 CNY/T on Friday. The market's pessimistic sentiment has become increasingly strong. Under the situation of oversupply and lack of relevant positive support, it was difficult to be optimistic about the short-term magnesium market. Pay attention to changes in supply and demand relationships.

• [Editor:kangmingfei]