[Ferro-Alloys.com] 

[Top News] A big ferrosilicon plant in Wuhai City, Inner Mongolia, has shutdown its 12 furnaces, which was expect to decrease the output by around 10000 tons in April.

[Steel Bidding] Xin Steel released its new round of ferrosilicon bidding in March, with a price of 7230 yuan per ton, down 470 yuan per ton than the price in the beginning of the month.

[Spot Market] The operating rate and output are still relatively stable under the comprehensive effects of the shutdown of furnace in Inner Mongolia and the production resumption in Ningxia. However, the demand side is relatively weak due to the strict implementation of the environmental protection and production restriction policies in Tangshan and other places. It is expected that the ferrosilicon market will be under pressure in the short term, the transaction slows down, spot in some factories have accumulated, the direction of steel bidding has not been clear in April, the confidence in the spot market is insufficient, and the wait-and-see mood of traders is strong. Pay attention to the change of supply and demand relationship and the trend of futures market.

[Ferrosilicon Futures 2105 Contract] Opening price of ferrosilicon futures 2105 contract of this week was 6956, highest price was 7218, lowest price was 6802, closing price was 6978 and the settlement price was 6948. The trading volumes were 1108776 and the positions were 144672.

[Steel Market] Hebei Jinxi Group announced that the production must be restricted by 30% from March 20, 2021 to December 31, 2021. Considering the target of reducing crude steel production capacity by the Ministry of Industry and Information Technology this year, the supply contraction will continue to affect, while the downstream demand is still in a stable and good situation. This week, the steel inventory continued to decline, and the export has picked up to some degree, and the supply and demand situation is generally stable.

[Magnesium Market] The downstream demand is not improving, the market mentality is slightly weak, and the wait-and-see mood is high. However, the pressure of inventory is not great, and the magnesium price falling sharply didn't seem much likelihood of it happening. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 15200-15400 yuan per ton.