[Ferro-Alloys.com]

[Raw Material] The ex-factory quotation for small-sized semi coke was about 850-1100 CNY/T; The factory price of silica was around 180-250 CNY/T; The price of oxide skin was around 980-1030 CNY/T; The electricity prices ranged from 0.40 to 0.52 CNY//kWh.

[Spot Market] Downstream demand and transactions were poor, and the ferrosilicon market operated under pressure. Ningxia and other production areas reported production reduction and maintenance news again (most of the previously suspended or peak avoiding production enterprises have not resumed production). In March, HBIS Group's tender volume for 75B ferrosilicon was 1640 tons, with the price was set at 6750 CNY/T, a decrease of 270 CNY/T compared to the previous month, which directly lowered market confidence and led to a continuous decline in futures. Under shipping pressure, the manufacturer had to lower their quotation, and the quotation for 72# ferrosilicon standard blocks was mostly around 6250-6400 CNY/T, while the quotation for 75# ferrosilicon standard blocks was around 6850-7000 CNY/T, which was affected by the rapid decline in downstream magnesium metal market. Without obvious positive factors, it’s difficult for the market to recover in the short term.

[Futures Market] The opening price of 2405 main contract was 6566, the highest price was 6570, the lowest price was 6426, the closing price was 6432, the settlement price was 6458, the position was 199833, the trading volume was 441616, and the transaction amount was 14.3579 billion yuan, a decrease of 2.13%.

Below are Ferrosilicon Futures main contract daily specific performances:

[Demand Market] Since 2024, the steel market has been under pressure, with data showing that steel prices have fallen to the lowest point in the same period in three years on March 11th. Under the severe situation, a large number of steel mills have started to shut down for maintenance. Some steel mills have set price limits and issued notification letters, stating that "if there is an increase, it will rise; if there is a decrease, it will not fall.". The Guangdong and Shandong Iron and Steel Industry Associations have sent notices advocating self-restraint, using production control (reduction) as the main means, promoting high-quality development of the industry.

According to data from the CISA, in early March 2024, key steel enterprises produced a total of 20.5798 million tons of crude steel, with a daily output of 2.058 million tons, a decrease of 3.38% compared to the previous period; At the end of early March, the inventory of key steel enterprises was about 19.5239 million tons, an increase of 1.504 million tons or 8.35% compared to the previous ten days (i.e. late February); An increase of 3.392 million tons or 21.03% compared to the same period last month. Analysts believed that lower than expected demand recovery and high inventory were the main reasons for the decline in steel prices. It was expected that downstream demand may rebound by the end of March, but the steel industry still needed to self regulate and reduce production to alleviate supply-demand conflicts.

This week, the price of magnesium accelerated its unexpected decline, falling all the way to around 17300-17400 CNY/T, and the sentiment was low and pessimistic. However, on the last working day of this week, with the increase of trading volume, magnesium prices have finally shown a rebound trend after a continuous decline for a month, with a significant rebound. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 17800-18000 CNY/T. Nevertheless, considering the ongoing supply-demand contradiction and the rapid decline or increase in prices, many users were still watching. Whether the price of magnesium can be sustained depended on the subsequent market demand and transaction follow-up.

• [Editor:kangmingfei]