[Ferro-Alloys.com]

Raw material side: The semi-coke market was operating steadily; The price of electrode paste has slightly increased; It was learned that the electricity price in Ningxia may increase by about 2 cents, but the overall impact on the production cost of ferrosilicon was not yet very significant.

Spot market: With the setting of the steel tender in August, the downstream inquiry has become significantly active, market sentiment has been boosted, manufacturers had ordered production, and the mentality of price-increasing was relatively strong; The inventory pressure in the factory was not large (but the inventory in the delivery warehouse remained high). Previously, enterprises with production restrictions continued to resume production, and there would be new production capacity in production areas such as Inner Mongolia and Ningxia. It was expected that production would increase in August. Although downstream demand was slowly recovering, the supply-demand contradiction was still ongoing, and ferrosilicon may fluctuate and consolidate in the short term.

Futures market: The Futures continued to fluctuate this week, with the opening price of the 2310 main contract being 7050, the highest price being 7164, the lowest price being 6968, the closing price being 7072, the settlement price being 7092, the trading volume being 1040648, and the position being 431454, a decrease of 0.20%.

Below are Ferrosilicon Futures main contract daily specific performances:

On the demand side: Currently, the steel market was still in the traditional off-season, and there has been no follow-up on the "production control" news. Under the influence of high temperature and rainy weather, demand has not significantly improved, terminal procurement enthusiasm was not high, the trading atmosphere has weakened, inventory has accumulated, and futures continuously weakened. Steel prices were weak, the profits of steel mills was declining, and even a phenomenon of turning from profit to loss has occurred, leading to a shift in market mentality, increased willingness to clear out the inventory, and a cautious wait-and-see mentality. It was expected that the short-term steel market may maintain a wide range of volatility. Considering the increased implementation of policies in the later stage and the upcoming peak season of traditional demand for the "Golden September & Silver October", the market was still optimistic about the fourth quarter market.

This week, the domestic magnesium metal market rose first and then fell. In the early part of the week, under the influence of increased downstream demand, the price of magnesium quickly rose to around 22000 CNY/T. However, the market continued to face difficulties in accepting high prices, and magnesium prices subsequently fell. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly around 21700-21800 CNY/T, an increase of about 600 CNY/T compared to last week. Considering the current low inventory pressure in factories, but overall weak demand, it was expected that the magnesium market would fluctuate and consolidate in the short term.

• [Editor:kangmingfei]