Weekly Report of Ferrosilicon Market (Dec 11-15, 2023)

  • Friday, December 15, 2023
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon futures, ferrosilicon spot, ferrosilicon demand, ferrosilicon supply, steel market, magnesium market
[Fellow]Downstream demand was weak, and the transactions were average.

[Ferro-Alloys.com]

[Raw Material] The ex-factory quotation for small-sized semi coke was about 1080-1180 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 Inner Mongolia ranged from 0.38 to 0.40 CNY//kWh.

[Spot Market] The cost has slightly decreased, profits have increased, and the ferrosilicon production remained stable and there was a strong reluctance of manufacturers to sell; The steel tender in December was coming to an end, with the traditional off-season combined with continuous snowfall and cold weather, downstream demand was weak, and the transactions were average. However, after rebounding last week, the futures rose slightly, and analysis believed that December to January would be a key time point for this round of winter storage and market had expectations for that, which has led to an improvement in sentiment, and spot prices remained stable. This week, the quotation for 72# ferrosilicon standard blocks was mostly around 6700-6800 CNY/T, while the quotation for 75# ferrosilicon standard blocks was around 7100-7300 CNY/T.

[Futures Market] The opening price of 2402 main contract was 6,908, the highest price was 6,936, the lowest price was 6,718, the closing price was 6,890, the settlement price was 6,862, the position was 357,406, the trading volume was 841,716, and the transaction amount was 28.7151 billion yuan, an increase of 0.12%.

Below are Ferrosilicon Futures main contract daily specific performances:

Date

Opening price

Highest price

Lowest price

Closing price

Settlement price

Range

Trading volume

Positions

Trading value (10000 tons)

12.11

6908

6936

6804

6848

6852

-0.49%

192408

362324

659109.25

12.12

6848

6858

6760

6838

6806

-0.20%

170925

365946

581577.59

12.13

6840

6874

6718

6738

6792

-1.00%

178639

369933

606678.29

12.14

6772

6822

6762

6790

6796

-0.03%

125701

361446

427044.28

12.15

6800

6908

6794

6890

6862

1.38%

174043

357406

597100.76

 
[Demand Market] According to data from CISA, in early December 2023, key steel enterprises produced a total of 19.3161 million tons of crude steel, with a daily output of 1.9316 million tons, a decrease of 4.19% compared to the previous period. In early December, the inventory of key steel enterprises was 14.106 million tons, an increase of 1.1429 million tons or 8.82% compared to the previous ten days (i.e. late November); A decrease of 583600 tons or 3.97% compared to the same period last month; In early December, the social inventory of 5 major varieties of steel in 21 cities was 7.37 million tons, a decrease of 180000 tons compared to the previous month, a decrease of 2.4%, and the inventory continued to decline slightly. This week, steel prices have been relatively weak, and the futures market has generally declined. However, coke has started a fourth round of price increasing, and there was still support on the cost side. Moreover, there was still room for macroeconomic policies, and short-term steel prices may fluctuate narrowly.
 
This week, the domestic magnesium metal market continued to operate steadily. On the one hand, downstream demand has not improved yet, and many northern regions have been affected by snowfall, leading to increased pressure on factory shipments; On the other hand, some enterprises in the Fugu area have started to resume production, and supply and demand pressure may gradually be reflected, some enterprises have slightly reduced prices. But factories were generally more willing to raise prices due to cost support, and it was expected that the probability of a significant price reduction was not high. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 20500-20600 CNY/T, and the transaction price was mostly around 20450-20550 CNY/T.

 

  • [Editor:kangmingfei]

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