This week, the domestic ferrosilicon market continued to be weak, the Futures was consolidated in a narrow range, the spot quotation was temporarily weak and stable, the transaction was slow, the market was under pressure, and the mood of supply and demand game was strong. In July, the 75B ferrosilicon tender volume of HBIS Group was 2260 tons, an increase of 161 tons month on month; The tender price was 8200 yuan per ton, down sharply by 1400 yuan per ton month on month. Considering that the transaction price has approached or even fallen below the cost line, plants in the main production areas have begun to reduce production in an orderly manner in order to get out of the haze as soon as possible. Gansu large ferrosilicon plant has stopped production of a 30000KVA furnace on July 1, and it was planned to continue to reduce the production of one 25500KVA and three 12500KVA furnaces, with a reduction ratio of 40%, which was expected to affect the monthly output of 7000-8000 tons; In addition, some enterprises in Zhongwei, Ningxia and Qinghai have reduced production or avoided peak production. It was estimated that would affect the total monthly output by about 16000 tons.

The weekly opening price of 2209 main contract was 8080, the highest price was 8198, the lowest price was 7690, the closing price was 8014, the settlement price was 8086, the trading volume was 974643, and the position was 147516, down 4.84%.

Below are ferrosilicon futures main contract daily specific performances:

In the downstream, according to the data of CISA, in late June 2022, the key steel enterprises produced a total of 20.9909 million tons of crude steel, with a daily output of 2.0991 million tons, a month on month decrease of 7.03%; At the end of late June, the steel inventory was 16.9486 million tons, a decrease of 3.5746 million tons or 17.42% over the previous ten days. A decrease of 993800 tons or 5.54% over the same period last month; An increase of 5.6517 million tons or 50.03% over the beginning of the year; Compared with the same period last year, it increased by 3.1825 million tons, an increase of 23.12%. On one hand, in the hot and rainy weather and the traditional off-season, the demand has not been effectively restored, the steel inventory continued to accumulate, and the production reduction and maintenance of steel mills continued to expand; On the other hand, the macro policy has a certain boost to the confidence of the steel market. With the gradual recovery of economic production, the inventory was generally in the downward channel. It was expected that the steel market would work toward stabilization in the short term.

This week, the domestic magnesium market was weak and consolidated, domestic and foreign demand continued to be weak, transactions were light, and there was a lack of good news support. Coupled with the traditional off-season in July, it was difficult for the magnesium market to rebound. Considering the cost pressure, the factory has a strong willingness to support the price. It was expected that the short-term magnesium market may continue to be stable and weak to adjust the operation. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24600-24900 yuan per ton.