Weekly Report of Ferrosilicon Market (Aug 15-19, 2022)

  • Friday, August 19, 2022
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon futures, ferrosilicon spot, ferrosilicon supply, ferrosilicon demand, steel mills, magnesium market
[Fellow]In addition, the cost of electricity and scrap steel affected the commencement of steel plants, thus suppressing the demand for ferrosilicon.
 
This week, under the influence of the new round of overall weakness of the ferrous metal market, the Ferrosilicon Futures rapidly and sharply declined, which led to a slight decrease in the spot price and suppressed the enterprise's mood to resume production. Currently, the production resumption in the production area was slow, and the downstream demand performance was normal, the market lacked favorable factors, and the wait-and-see mood was aggravated. It was expected that the short-term ferrosilicon market would still be difficult to break the weak situation. However, some people in the industry were optimistic about the the “September-October” peak demand season, and believing the market has the expectation of marginal improvement in demand. Pay attention to the change of supply-demand relationship and the trend of Futures market.
 
In the steel market, affected by factors such as insufficient release of downstream demand in the off-season, China's steel output showed a rapid decline in July. According to the data of the National Bureau of Statistics, the average daily output of crude steel in China in July was 2.6268 million tons, down 13.1% month on month, the lowest level in the same period in nearly three years. Since August, the domestic steel market has been in the alternate stage of the traditional low and peak season. Due to the improvement of the profits of some steel varieties, the enthusiasm of steel mills to resume production has gradually increased. However, due to the continuous extreme high temperature weather, the power supply in the south was tight, and almost all the electric furnace steel mills in some provinces were shut down. In addition, the cost of electricity and scrap steel affected the commencement of steel plants, thus suppressing the demand for ferrosilicon.
 
In terms of metal magnesium, in the third week of August, the domestic magnesium market finally ushered in a bottom rebound, and steadily increased in the early period and the kept strong in the later period. The main reason for the increase was that the exporters concentrated on the purchase of documents, which formed a certain support for 75 # ferrosilicon. However, the terminal demand was limited after all, and the downstream transaction follow-up was cautious in the later part of the week. Whether the magnesium price can continue to rise needed close attention. 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 2209 main contract was 8,100, the highest price was 8,184, the lowest price was 7,406, the closing price was 7,584, the settlement price was 7,518, the trading volume was 568,680, and the position was 62,819, down 6.46%.
 
Below are ferrosilicon Futures main contract daily specific performances:
 

Date

Opening price

Highest price

Lowest price

Closing price

Settlement price

Trading volume

Positions

Range

8.15

8100

8184

7970

8062

8066

104034

83600

-0.57%

8.16

8088

8148

7904

7910

8060

108989

72749

-1.93%

8.17

7900

7970

7508

7520

7726

151300

84342

-6.70%

8.18

7600

7686

7480

7498

7614

98720

70805

-2.95%

8.19

7530

7614

7406

7584

7518

105637

62819

-0.39%

  • [Editor:kangmingfei]

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