[Ferro-Alloys.com]

This week, Inner Mongolia and Ningxia successively released progresses on energy consumption control, driving the Futures market to rapidly climb,some manufacturers briefly stopped quoting externally, but quickly it regained rationality. The quotation for 72# ferrosilicon standard blocks in Inner Mongolia, Ningxia was slightly increased by 50 CNY/T to around 6850-6950 CNY/T; The quotation for 75# ferrosilicon standard block was still around 7200-7300 CNY/T, which was the same as last week. Enterprises with production restrictions continued to resume production, and some factories had little inventory pressure, sentiment improved, and there was a strong willingness to support prices. It was expected that production would increase in the near future. However, downstream procurement was still mainly based on demand, and the export situation has not significantly improved, indicating a strong game between supply and demand.

Futures market: The Futures continued to fluctuate this week. The opening price of the 2310 main contract was 6,914, the highest price was 7,310, the lowest price was 6,912, the closing price was 7,084, the settlement price was 7,094, the trading volume was 1,709,345, and the position of 438,190, an increase of 2.43%.

Below are Ferrosilicon Futures main contract daily specific performances:

Demand side: the tender price for 72# ferrosilion in August of some steel plants in the south has risen significantly, waiting for the final pricing guidance of HBIS Group (it was learned that its inquiry price was 7100 CNY/T, decrease by 150 CNY/T month on month). According to data from CISA, in late July 2023, key steel enterprises produced a total of 23.4914 million tons of crude steel, with a daily output of 2.1356 million tons, a decrease of 4.99% compared to the previous period; The daily production of pig iron was 1.9237 million tons, a decrease of 4.22% compared to the previous month. Under the influence of extreme weather conditions such as high temperatures, rain, and floods during the traditional off-season, both supply and demand have contracted, and according to statistics, social inventory has slightly increased for six consecutive weeks. However, the recent news of "production control" has attracted much attention, and the introduction and implementation of a series of macro policies were expected to bring a restorative rebound to the market in August.

In terms of metal magnesium, due to insufficient demand follow-up in the early part of this week, the quotation slightly weakened. However, as transaction volume increased, the price stopped falling and rebounded in the middle of the week, showing strong resilience. Some industry insiders believed that the supply and demand relationship was improving, and the market was tending to operate in an orderly manner. It was expected that the market would mainly fluctuate in a stable and moderate manner, with limited ups and downs. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly around 21100-21200 CNY/T.

• [Editor:kangmingfei]