Ferrosilicon market analysis 2022-12-23: Ferrosilicon fell steadily this week. The futures market fell sharply, most customers turned to the market to receive goods, factory inquiries were generally sold, quotations were loosened and lowered, manufacturers were producing normally, and supply increased slightly. Steel moves entered the market one after another in January, and the price of steel moves this week is between 8650-9000 yuan/ton, with large differences. At the end of the week, the mainstream market price was 72#8000-8100 yuan/ton, which was 50-100 yuan/ton lower than last week, and the transaction of 75# remained at 8500-8600 yuan/ton, which has not been adjusted yet.
1. The domestic market this week
This week, ferrosilicon 72# showed a downward trend, and 75# remained stable without adjustment. At the resumption of the market at the beginning of the week, the futures market fell sharply, and the market was in a strong wait-and-see mood. Some users with needs turned to the market to receive goods, and the price was more advantageous, and it was spot. The transaction volume of manufacturers’ inquiries declined, and most of them were delivery orders. The high quotations gradually decreased, and the prices loosened and declined. The price of 75# ferrosilicon is stable. Although the market of downstream magnesium factories is generally sluggish, the production cut is very small. The demand for 75# ferrosilicon remains normal. In addition, the 75# silicon factory has no inventory pressure, and the transaction is maintained at 8500-8600 yuan / ton Cash, unchanged.
In terms of steel recruitment this week: Hengyang Steel Pipe is priced at 8,650 yuan/ton, a steel plant in Guizhou is priced at 8,900/9,000 yuan/ton, Hunan Iron and Steel is priced at 8,780 yuan/ton, Xinyu Iron and Steel is priced at 8,700 yuan/ton, and Guangxi Shenglong is priced at 8,780 yuan/ton in cash.
2. This week’s export market
This week’s export price did not change much, maintaining at FOB72#1530-1570, 75#1630-1670 US dollars / ton, and the Christmas holiday abroad, the transaction of export inquiries this week is relatively deserted. Transactions in the Indian ferrosilicon market were average, with prices falling slightly, 70# 11.8-125,000 rupees/ton, down 20,000 rupees/ton from last week.
3. the downstream market
Magnesium metal: This week, the turnover of magnesium ingots hovered at 21,400-21,600 yuan/ton in cash. The end of the year is approaching. This week, some downstream companies began to enter the market to stock up. Generally, there is a slight stalemate between supply and demand. At present, the spot supply in the magnesium market is not tight, mainly supported by cost factors. Magnesium factories are unwilling to continue to drop prices. It is expected that the magnesium market will basically maintain stable operation in the short term.
4. Forecast for next week
Steel recruitment will continue to advance in January next week, and it is expected that the amount of steel recruitment will maintain normal purchases, and the bi-monthly bids will still be small. The ferrosilicon plant maintains a profitable operation, and the production of the factory is basically normal. Next week, it will still be in the stocking period before the year, and the spot market is expected to be weak.