[Ferro-Alloys.com]

The raw material side was temporarily stable, and there has been little change in the production and supply of ferrosilicon this week. Although some factories in certain regions were gradually resuming production, there would not be a significant increase in short-term production. The Futures market continued to fluctuate, but the emotional were relatively calm, and cautious wait-and-see was the majority. The spot activity was low, and there was a slight fluctuation in the quotation. The quotation for 72# ferrosilicon standard block was mostly around 6800-6900 CNY/T, while the quotation for 75# ferrosilicon standard block was around 7200-7300 CNY/T. Although steel mills had a low willingness to reduce production, under the pressure of traditional off-season, the days of raw material inventory were shortened, and the demand for ferrosilicon was expected to be average in the short term. The market would continue to be dominated by weak consolidation.

The Futures market was volatile and upward, and the weekly opening price of 2310 main contracts was 6,906, the highest price was 7,064, the lowest price was 6,764, the closing price was 6,966, the settlement price was 6,952, the trading volume was 1,015,496, and the position was 374,269, a decrease of 0.20%.

Below are Ferrosilicon Futures main contract daily specific performances:

In terms of downstream, the National Bureau of Statistics released that in the first half of 2023, the national crude steel production was 535.64 million tons, a year-on-year increase of 1.3%; In June, China's crude steel production reached 91.11 million tons, a year-on-year increase of 0.4%; The daily average production of crude steel in June was 3.037 million tons, an increase of 4.5% compared to the previous month. The spokesperson for the Ministry of Industry and Information Technology stated that the next step would be to prioritize stable growth and accelerate the formulation and implementation of work plans for stabilizing growth in ten key industries such as automobiles and steel, injecting optimism into the market for the future demand. This week, the Futures has risen, and market confidence has been boosted to some extent. Spot prices have followed the rise, combined with factors such as raw material support and low inventory pressure, recently, steel mills had low willingness to reduce production, and confidence has increased. The short-term steel market may experience fluctuations in a stronger range.

In the traditional off-season, due to weak downstream demand and low acceptance of high-priced sources, the magnesium market has slightly weakened this week, with a price reduction of about 200 CNY/T. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly around 20700-20800 CNY/T. However, considering the low inventory pressure on the factory side and the rising cost of coal prices, there was a strong willingness to support prices, and it was difficult to find goods at too low prices. Under the interweaving of favorable and bearish factors, there was a strong sense of market stalemate in the game, and the probability of narrow fluctuations in the short-term was high. Pay attention to changes in the supply and demand relationship.

• [Editor:kangmingfei]