This week, ferrosilicon futures fluctuated in a narrow range and rose slightly. The spot price was relatively stable. The price of 72# ferrosilicon in Gansu was about 8700 yuan per ton; The production side continued to maintain a high operating rate, but there was still no significant improvement in the transaction. The downstream purchasing enthusiasm was low, the market sentiment was not high; It’s nearly the end of the month, the tender progress of steel mills was slow, but some pricing increased. It was reported that the tender price of a steel mill in North China was 9380 yuan per ton, and the overall demand was fine. In the coming days, we need to pay more attention to the progress of steel tender and the trend of futures.

The weekly opening price of 2209 main contract was 8,920, the highest price was 9,034, the lowest price was 8,666, the closing price was 8,940, the settlement price was 8,934, the trading volume was 939,866, and the position was 142,263, up 1.22%.

Below are ferrosilicon futures main contract daily specific performances:

In terms of downstream steel plants, according to the data of CISA, in the first ten days of May 2022, the key steel enterprises produced 22.991 million tons of crude steel, with a daily output of 2.2991 million tons, a month on month decrease of 0.27%; At the end of middle-May, the steel inventory was 19.9774 million tons, an increase of 1.2289 million tons or 6.55% over the previous ten days. An increase of 310200 tons or 1.58% over the same period last month; An increase of 1.8887 million tons or 10.44% over the end of last month; An increase of 8.6805 million tons over the beginning of the year, an increase of 76.84%; An increase of 5.3379 million tons or 36.46% over the same period last year. It was 2.0935 million tons more than the highest point of last year (17.8839 million tons in early-March), an increase of 11.71%. In May, the demand performance was still weak, the steel price continued to decline, the market confidence was insufficient, pessimism spread, and the short-term operation may be weak.

In the situation of insufficient follow-up of downstream procurement and lack of support from favorable factors, the price of domestic magnesium fell by about 2000 yuan per ton this week. Under the market pattern of oversupply, the magnesium market was under pressure, and the price has fallen to about 30000 yuan per ton. The willingness of the factory to continue to reduce price was not strong, but whether it can promote the stabilization of magnesium price depends on downstream follow-up and transactions. The ex-factory cash quotation including tax of 99.9% magnesium ingots on Friday was about 30000-31000 yuan per ton. It was expected that the weak consolidation would still prevail in the short term.