[Ferro-Alloys.com]

The tender price of ferrosilicon 75B of HBIS Group in July was 7250 CNY/T, with a slight decrease of 50 CNY/T compared with the previous month and a volume of 2640 tons, an increase of 404 tons compared with June. The downstream inquiry and purchase increased, but the actual transaction and shipment situation was still poor. After all, the traditional off-season was coming, and the operation was cautious. The cost side price of semi-coke has slightly increased, but the Futures market has continued to decline, and some companies in some regions have started to resume production. The market mentality was average, with mainstream quotations for 72# ferrosilicon ranging from 6800-6900 CNY/T, and 7200-7300 CNY/T for 75# ferrosilicon. The interweaving of multiple factors led to a decrease in the probability for the market to continue to decline, which may operate weakly and steadily.

This week, the opening price of the 2309 main contract was 7116, the highest price was 7116, the lowest price was 6960, the closing price was 6974, the settlement price was 7022, the trading volume was 479174, and the position was 152946, a decrease of 2.60%.

Below are Ferrosilicon Futures main contract daily specific performances:

Downstream, according to data from CISA, in late June 2023, key steel enterprises produced a total of 22.46 million tons of crude steel, with a daily output of 2.246 million tons, a decrease of 0.74% compared to the previous period; The inventory of key steel enterprises was 14.7803 million tons, a decrease of 1.4417 million tons or 8.89% compared to the previous ten days (i.e. mid June); A decrease of 840400 tons or 5.38% compared to the same period last month; A decrease of 2.1684 million tons or 12.79% compared to the same period last year. The hot rainy season was approaching, and demand was weakening during the off-season, while supply pressure still ongoing. It was reported that Tangshan would implement production restriction measures for steel enterprises in July, and there was also a possibility of continuous increase in blast furnace maintenance. Under the weak supply and demand pattern, the space for steel prices to rise and fall was limited, it may continue to fluctuate.

This week, the domestic magnesium market rebounded by around 500 CNY/T due to an increase in downstream inquiries and a slight increase in coal prices. However, as the quotation rose and downstream was unwilling to accept, inquiries began to slow down again, and magnesium prices gradually stabilized. It was learned that the market had low expectations for demand in July, but the current factory inventory pressure was not high, and sentiment has improved. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly around 20800-20900 CNY/T..

• [Editor:kangmingfei]