[Ferro-Alloys.com]

[Ferrosilicon Market] In February, the ferrosilicon spot market operated steadily under favorable factors such as small inventory, and the price of steel tender gradually increased (the tender price of ferrosilicon 75-B of a steel plant in Hunan was set at 9350 yuan per ton in February). The quotation was rising, and it was difficult to find low-cost goods. In the fourth week of February, the quotation of 72# ferrosilicon was mostly about 8700-8900 yuan per ton; Under the condition of fair profits, the supply side was also gradually recovering (the domestic ferrosilicon output again exceeded 500000 tons in January). On the 14th, Ningxia Zhongwei Zhongtai resumed the production of a 33000KVA submerged arc furnace. It was reported that the daily output was about 100 tons. It was expected that new production would be put into operation in the main production area in March (mainly concentrated in production areas outside Inner Mongolia).

[Futures Market]

[Steel Market] Data released by the worldsteel: World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 155.0 million tonnes (Mt) in January 2022, a 6.1% decrease compared to January 2021; Data from CISA: in mid February 2022, the average daily crude steel output of key steel enterprises was 1.8989 million tons, down 1.28% month on month; The steel inventory was 16.9035 million tons, an increase of 49500 tons or 0.29% over the previous ten days; It was reported that at present, China's six major coastal steel production bases have been put into operation, with a total steel production capacity of nearly 90 million tons, radiating the market all over the country.

In February, the domestic steel market continued to operate in shock, the downstream demand has not been fully started, the recovery of the supply side exceeded expectations, but it was still relatively low, and some enterprises have not resumed production due to the impact of the Winter Olympics; After the Lantern Festival, the downstream terminals resumed production and work successfully, the demand for steel recovered, and the factory inventory decreased slightly; In terms of price, the sharp drop in the price of iron ore futures has led to the decline in the price of steel, and the market mentality was poor. In the later stage, with the gradual recovery of transactions, the steel market may pick up.

[Magnesium Market] In the first working week after the Spring Festival, driven by factors such as low factory inventory pressure and uncertainty of environmental protection policies, the domestic metal magnesium market operated strongly, but there was a small reversal soon: the demand was cold in the middle of the month, and the quotation fell from 42000 yuan per ton to 39000 yuan per ton. Then the demand followed up, and the quotation rose slightly to about 40000 yuan per ton. In the last ten days of the month, under the influence of the environmental protection policy, magnesium market began to make great strides and rose strongly. The mainstream price rose rapidly from 40000 yuan per ton to 45000 yuan per ton. It was learned that the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area on February 25 was about 46000-50000 yuan per ton. The factory was relatively optimistic about the future market, but the downstream acceptance of high prices would also be limited. Pay attention to the progress of environmental protection policies and downstream follow-up. 

• [Editor:kangmingfei]