The price of raw material semi-coke remained stable at a high level, and the futures continued to rise. This week, the domestic ferrosilicon market continued to operate steadily, the spot quotation was strong, and after the steel bidding ended in August, with the price increased by about 500 yuan per ton, the confidence in the industry was good, and the bullish mood was strong. According to the current situation, the approximate rate of steel bidding in September will continue to increase. 

Since August, there has been an expectation of limited production in Ningxia (some ferrosilicon plants have already shut down furnaces), and the ferrosilicon supply end may be affected in the later stage.

The downstream steel market was pessimistic this week, with weak supply and demand (the supply side data fell month on month from July to August; and the demand was still in the stage of gradual recovery), the transaction was depressed, the futures was down, and also with the spot price, it was expected to be weak in the short term. At the same time, although supported by the policy of ensuring supply and stabilizing price, most steel mills are in strict implementation of the production restriction task, and CISA also issued a report which said it was expected that the decline in crude steel output would increase in the next five months, and the steel price was difficult to fall sharply.

This week, the domestic metal magnesium market was still at a high level, and the price slightly decreased. The supply side was in a state of  low inventory and tight spot; The cost side was supported by coal and ferrosilicon; The demand side was stable on a whole, and magnesium prices were easy to rise but difficult to fall in the short term. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was more than 22300-22400 yuan per ton.

Opening price of ferrosilicon futures 2201 contract of this week was 9,098, highest price was 9,306, lowest price was 8,858, closing price was 9,300 and the settlement price was 9,216. The trading volumes were 1,260,948 and the positions were 220,947