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Weekly Report of Ferrosilicon Market (Sep 5-9, 2022)

  • Friday, September 9, 2022
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon futures, ferrosilicon spot, ferrosilicon supply, ferrosilicon demand, steel mills, magnesium market
[Fellow]This week, the ferrosilicon Futures market rose again, the spot price fluctuated lightly, and the supply side was generally stable.

This week, the ferrosilicon Futures market rose again, the spot price fluctuated lightly, and the supply side was generally stable. However, it was learned that large plant in Inner Mongolia stopped 6 ferrosilicon furnaces due to lack of power this week, and the duration of shutdown was to be determined. On the downstream side, with the opening of a new round of steel tender, steel mills successively started purchasing, and the transaction has slightly improved. The tender quantity of ferrosilicon 72# of HBIS Group in September was 2400 tons, an increase of 300 tons compared with the previous month and the inquiry was 7900 yuan per ton; Shagang Group released its volume with 1500 tons for public tender in September, and the price was set at 8050 yuan per ton, a month on month decrease of 50 yuan per ton. The overall tone of September has been basically set, waiting for the final price of HBIS Group. On the cost side, the price of small-sized materials of semi-coke was 1600-1700 yuan per ton, which forms a certain support for the spot price of ferrosilicon. In the short term, the ferrosilicon market may continue to maintain stability or even be strong. Pay attention to the trend of Futures market and the change of supply and demand relationship.

On the steel market, since the middle of August, the resumption of production of steel mills has been increasing. However, after the recent high temperature and power limitation problems have been gradually alleviated, there was still no obvious improvement on the demand side. The infrastructure investment has obviously rebounded to drive steel consumption but the continuous downturn in real estate has dragged down the overall demand for steel, and the demand of the manufacturing industry has increased and decreased. The overall apparent consumption of steel was lower than expected, and the terminal transactions continued to be depressed. Some experts said that September and October were the traditional peak seasons of the steel market, and the two months in this year may have a wave of rising market, but some uncertain factors may inhibit the upward space of steel prices, and supply exceeding demand was always the biggest pressure for steel prices to rise.

In terms of metal magnesium, this week's turnover has increased significantly compared with the previous period, the factory's inventory has been effectively released. There were not many stocks in stock, and the confidence in the future market was strengthened. However, the high price transactions have slowed down, and the overall demand this year was insufficient after all. Some people in the industry believed that the momentum of the magnesium market's continuous rise was not strong. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24500-25000 yuan per ton.

The weekly opening price of 2210 main contract was 7,806, the highest price was 8,266, the lowest price was 7,622, the closing price was 8,250, the settlement price was 8,158, the trading volume was 680,123, and the position was 45,604, up 7.48%.

Below are ferrosilicon Futures main contract daily specific performances:

Date

Opening price

Highest price

Lowest price

Closing price

Settlement price

Trading volume

Positions

Range

9.5

7806

7920

7714

7906

7818

129621

68953

3.00%

9.6

7902

7948

7778

7796

7856

111574

62006

-0.28%

9.7

7740

7782

7622

7702

7708

121382

56254

-1.96%

9.8

7718

7980

7700

7920

7884

145906

50070

2.75%

9.9

7938

8266

7928

8250

8158

171640

45604

4.64%

  • [Editor:kangmingfei]

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