[Ferro-Alloys.com]

[Raw Material] The ex-factory quotation for small-sized semi coke was about 1050-1150 CNY/T; The factory price of silica was around 220-260 CNY/T; The price of oxide skin was around 980-1010 CNY/T; The electricity prices in Inner Mongolia ranged from 0.38 to 0.40 CNY//kWh.

[Spot Market] Enterprises’ production was stable, and the steel tender price shifted downwards (HBIS Group purchased 2656 tons of ferrosilicon 75B from January to February 2024, an increase of 946 tons compared to December, 2023; it was reported that the tender price of a steel plant in Jiangsu has dropped to 6950 CNY/T). The support from raw material costs has further decreased, and the futures market was also mainly downward, under the influence of bearish factors, the sentiment of the ferrosilicon spot market was relatively cautious, with a strong willingness to actively ship. However, considering inquiries increased due to steel tenders released, and the market still had expectations for this year's winter storage, the manufacturers had a clear attitude of price strong, the quotation for 72# ferrosilicon standard blocks was mostly around 6600-6700 CNY/T, while the quotation for 75# ferrosilicon standard blocks was around 7100-7200 CNY/T.

[Futures Market] The opening price of 2403 main contract was 6760, the highest price was 6872, the lowest price was 6708, the closing price was 6750, the settlement price was 6742, the position was 320271, the trading volume was 477304, and the transaction amount was 16.2016 billion yuan, a decrease of 0.38%.

Below are Ferrosilicon Futures main contract daily specific performances:

[Demand Market] According to data from CISA, in late December 2023, key steel enterprises produced a total of 18.327 million tons of crude steel, with a daily output of 1.6661 million tons, a decrease of 13.63% compared to the previous period. In late December, the inventory of key steel enterprises was 12.3595 million tons, a decrease of 2.657 million tons or 17.69% compared to the previous ten days (i.e. mid December); Compared to the same period last month, it decreased by 603600 tons or 4.66%. In late December, the social inventory of 5 major varieties of steel in 21 cities was 7.29 million tons, an increase of 100000 tons compared to the previous month, an increase of 1.4%. After a continuous decline for 7 ten-days, the inventory slightly increased. In the traditional off-season, demand further weakened, steel mills reduced production during winter maintenance, producing enthusiasm decreased, and output declined; The high raw material costs provided strong support for steel prices; Due to the high prices, the willingness to store in winter was weak, but the market still had sufficient confidence in the strength of macroeconomic policies, and the overall mentality was cautious and optimistic.

Entering 2024, the magnesium market overall weak and stable. Downstream demand had not shown a significant improvement. Some industry insiders indicated that export demand would be released after New Year's Day, but there were also unfavorable factors such as rising shipping costs and difficulties in shipping. In the short term, it was difficult for the demand side to see a significant improvement; However, considering the cost and operational pressure of the factory, it was also difficult to further reduce the price of magnesium. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 20200 CNY/T.

• [Editor:kangmingfei]