[Ferro-Alloys.com]

[Raw Material] The ex-factory quotation for small-sized semi coke was about 1120-1240 CNY/T; The factory price of silica was around 220-260 CNY/T; The price of oxide skin was around 970-1000 CNY/T; The electricity prices in the main production areas ranged from 0.39 to 0.48 CNY//kWh.

[Spot Market] The cost side remained stable, and according to calculations, some companies in certain regions had already incurred losses. Manufacturers had a clear willingness to raise prices, but the shipment situation was average. Without positive support, spot prices fluctuated slightly, and market expectations were weak, with a majority being wait-and-see; Downstream demand was still low. In December, HBIS Group tendered 1710 tons of ferrosilicon 75B, a decrease of 153 tons from November, and the inquiry price was 7000 CNY/T, a decrease of 330 CNY/T compared to the previous month, and the export market has not significantly improved yet. However, analysis suggested that winter storage demand still existed. This week, the quotation for 72# ferrosilicon standard blocks was mostly around 6650-6800 CNY/T, while the quotation for 75# ferrosilicon standard blocks was around 7100-7300 CNY/T.

[Futures Market] The 2402 main contract rebounded after three consecutive weeks of decline, with a weekly opening price of 6780, a highest price of 6966, a lowest price of 6584, a closing price of 6916, a settlement price of 6882, a position of 380476, a trading volume of 1025994, and a transaction amount of 34.5957 billion yuan, an increase of 2.28%.

Below are Ferrosilicon Futures main contract daily specific performances:

[Demand Market] According to data from CISA, in late November 2023, the key steel enterprises produced a total of 20.1606 million tons of crude steel, with a daily output of 2.0161 million tons, a month on month increase of 2.39%; In late November, the steel inventory of key steel enterprises was 12.9631 million tons, a decrease of 2.3668 million tons or 15.44% compared to the previous ten days (i.e. mid November); Compared to the same period last month, it decreased by 803200 tons or 5.87%. Steel mills had acceptable profits, with a slight increase in daily crude steel production; The release of macro sentiment and high cost support were expected to drive steel prices to fluctuate strongly, but the demand in the off-season remained weak, and the upward space was expected to be limited.

This week, the domestic magnesium metal market has been operating steadily, and there was no significant recovery in the downstream market. The demand for replenishment entered the market in an orderly manner, and follow-up was still cautious; The factory had a strong willingness to raise prices due to cost support, resulting in a decrease in the supply of low-priced goods in the market. However, considering the situation of oversupply, the strong rebound in magnesium prices in the short term lacked support. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 20500-20600 CNY/T.

• [Editor:kangmingfei]