Ferrosilicon Weekly Review (2.6-2.10): Rising costs and weak game demand, weak market price down
This week, ferrosilicon is running in a downward trend, the daily output on the supply side continues to increase, the pace of demand recovery is slow, and the enthusiasm for downstream procurement is average, so prices are kept on the sidelines. The price of electricity in production areas has risen, and the bottom support of costs has moved up, but coal prices have fallen, and raw material prices are expected to fall. Steel recruitment continues to advance, East China Shagang, Zhongtian, and Baosteel are priced at 8,500 yuan/ton, and North China’s pricing is slower. At the end of the week, the mainstream market price was 72#7700-7900 and 75#8200-8300 yuan/ton, which was 100-150 yuan/ton lower than last week.
1: The domestic market this week
Ferrosilicon continued to fall this week. According to the news, firstly, the January electricity prices in the main production areas have been settled this week, and the Zhongwei and Qinghai electricity prices have risen, and the bottom support of the cost has moved up. , some semi-coke factories lowered their prices by 50-80 yuan/ton. The third is that steel recruits are priced one after another. Steel enterprises in East China have basically completed their purchases, while North China has started but pricing is slow. This week, the pace of market transactions has not improved significantly. Most downstream users have reserve stocks before the Spring Festival. After the festival, they mainly consume and stock up. The recovery of terminal demand is slow. The downstream waits and sees to suppress prices. , the market price was under pressure and went down. In the latter part of the week, the mainstream market price was 72#7700-7900 and 75#8200-8300 yuan/ton, which was 100-150 yuan/ton lower than last week.
Steel recruitment this week: Jiangsu Shagang 8,500 yuan/ton, Zhongtian Iron and Steel Nantong 8,500 yuan/ton, Baosteel 8,500 yuan/ton.
Two: This week’s export market
This week, the domestic price continued to fall, the exchange rate rebounded, the export demand was normal, and the price fell, FOB72#1540-1580, 75#1650-1680 US dollars / ton, down 20-30 US dollars / ton from last week. The price in India is relatively stable, the mainstream quotation is 70#125,000 rupees/ton, and some quotations are on the high side at 126,000 rupees/ton, and the market feedback is that the transactions are average.
Three: the downstream market
Magnesium metal: Magnesium ingots stabilized and then fell this week. The market was relatively stable at 21,900 yuan/ton in cash at the beginning of the week. First, the price of raw coal and ferrosilicon fell. The third is that the inventory pressure of magnesium factories has not been alleviated. In the case of weak cost and demand, magnesium prices loosened slightly in the latter part of the week, with transactions at 21,700-21,800 yuan/ton, down 100-200 yuan/ton.
Four: Forecast for next week
This week, the ferrosilicon futures are showing a downward trend, the spot transaction activity is average, some factories still have a backlog of inventory, the steel recruitment is continuing to advance, and the tone of the steel recruitment is basically determined. Raw material semi-coke began to loosen, the cost of ferrosilicon is still supported but the support is not strong, the supply remains high, and demand recovery is slow. Next week, the market will pay attention to the changes in raw materials and demand, and the market is expected to remain weak and stable.