Weekly Report of Ferrosilicon Market (Apr 22-26, 2024)

  • Friday, April 26, 2024
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon futures, ferrosilicon spot, ferrosilicon demand, ferrosilicon supply, steel market, magnesium market
[Fellow]This week, the futures market saw a slight consolidation, and with increased support on the cost side, the released demand for replenishment from steel mills before the holiday, the spot price operated firmly.
 
[Raw Material] The ex-factory quotation for small-sized semi coke was about 800-950 CNY/T; The factory price of silica was around 180-260 CNY/T; The price of oxide skin was around 950-980 CNY/T; The electricity prices ranged from 0.41 to 0.52 CNY//kWh.
 
[Spot Market] This week, the futures market saw a slight consolidation, and with increased support on the cost side, the released demand for replenishment from steel mills before the holiday (one local steel mill in South China set its tender price for 72# ferrosilicon at 6850 CNY/T, an increase of 200 CNY/T compared to last month), and the improvement in market sentiment, the spot price operated firmly, with the quotation for 72# ferrosilicon standard blocks risen to around 6500 CNY/T, while the quotation for 75# ferrosilicon standard blocks around 6800-7000 CNY/T. The company's profit margin was better and inventory pressure has been alleviated, and the willingness to resume production of factories was increasing. Many believed that the operating rate and output would rebound in the near future. The short-term trend of ferrosilicon was expected to continue to be strong, but whether it can continue to remain strong in the future still requires attention to changes in supply and demand relationships.
 
[Futures Market] The opening price of 2406 main contract was 6714, the highest price was 6876, the lowest price was 6574, the closing price was 6718, the settlement price was 6782, the position was 101686, the trading volume was 846427, and the transaction amount was 28.4731 billion yuan, an increase of 0.69%.
 
 
Below are Ferrosilicon Futures main contract daily specific performances:
 

Date

Opening price

Highest price

Lowest price

Closing price

Settlement price

Range

Trading volume

Positions

Trading value (10000 tons)

4.22

6714

6798

6680

6756

6742

1.26%

148138

157904

499384.28

4.23

6748

6748

6574

6586

6654

-2.31%

123851

150619

411976.52

4.24

6604

6810

6604

6682

6704

0.42%

211298

139123

708179.06

4.25

6732

6812

6666

6754

6740

0.75%

169081

126001

569817.88

4.26

6754

6876

6664

6718

6782

-0.33%

194059

101686

657948.97

 
 
[Demand Market] This week, steel prices fluctuated, with strong support from the cost side, inventory has continued to decline, and the profitability of steel mills has improved. Market sentiment lightened to some extent. According to data from the CISA, in mid April 2024, key steel enterprises produced a total of 21.1876 million tons of crude steel, with a daily crude steel production of 2.1188 million tons, a month on month increase of 0.33%; At the end of mid April, the steel inventory of steel enterprises was about 18.1161 million tons, a decrease of 137700 tons or 0.75% compared to the previous ten days (i.e. early April); A decrease of 1.4176 million tons or 7.26% compared to the same period last month; In mid April, the social inventory of 5 varieties of steel in 21 cities was 12.37 million tons, a decrease of 710000 tons compared to the previous month, a decrease of 5.4%. In the short term, the steel market is expected to continue to fluctuate, but downstream acceptance of high prices is not high, and the range of rise and fall will be limited.
 
In the early part of this week, the domestic magnesium market was operating steadily, but in the later stage, due to weak downstream demand, cold inquiries, and weak high-price transactions, factories adjusted their prices accordingly. In the short term, there is still pressure on the operation of the magnesium market in a state of strong supply and weak demand, which may lead to weak consolidation. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 18400 CNY/T. Follow up on demand and transaction status.
 
  • [Editor:kangmingfei]

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