[Ferro-Alloys.com]

Under the strong support of the cost side (semi-coke, electricity and transportation costs increased), the ferrosilicon spot market has been operating steadily this week; The downstream steel mills had obvious demand for stocking and replenishing the warehouse, and the market activity increased. In October, the tender price of ferrosilicon of HBIS Group rose 650 CNY/T month on month to 8850 CNY/T, which greatly improved the market confidence. The manufacturers had low willingness to sell at low prices and strong sentiment to support prices; As the supply side has seen a decrease in supply and a shortage of inventory, the enterprises in the production areas continued to resume production. In terms of Futures, when the market opened on Monday, the main contract rose rapidly and significantly, but then returned to rationality, and the trend of spot was not affected temporarily, but the market was more cautious.

The weekly opening price of 2211 main contract was 8,620, the highest price was 8,886, the lowest price was 8,402, the closing price was 8,442, the settlement price was 8,488, the trading volume was 890,136, and the position was 53,241, up 0.50%.

In terms of downstream steel mills, in the first ten days of October, CISA reported that the daily output of crude steel of key iron and steel enterprises fell back (in the first ten days of October, key iron and steel enterprises produced a total of 21.0775 million tons of crude steel, with a daily output of 2.1077 million tons, down 1.11% month on month); The social inventory increased for the first time after 10 ten-days decreasing (In the first ten days of October, the steel inventory of key steel enterprises was 16.3169 million tons, an increase of 434000 tons or 2.73% over the end of last month; a decrease of 747600 tons or 4.38% over the same ten days of last month; an increase of 5.02 million tons or 44.44% over the beginning of the year; an increase of 3.4743 million tons or 27.05% over the same period of last year. In the first ten days of October, the social inventory of five major varieties of steel in 21 cities was 9.03 million tons, an increase of 510000 tons or 6.0% month on month; an increase of 1.15 million tons over the beginning of the year, up 14.6%; A year-on-year decrease of 2.09 million tons, down 18.8%).

Recently, due to the implementation of control measures in many places, the terminal demand for steel has been restrained to some extent. However, according to the industry analysis, the overall demand of the steel industry was still resilient and would not fall precipitously, and the profits of the leading enterprises with advantages would still remain relatively stable.

This week, the domestic magnesium market rose first and then stabilized. The quotation was gradually raised from 24600 CNY/T to 25000 CNY/T. The factory's shipment was relatively smooth in the early part of this week, but it turned to be flat in the later part. Under the influence of factors such as the cost support of ferrosilicon and coal and the rise of transportation costs, the price of magnesium ingots rose; However, the overall demand was weak after all, and the acceptance of high prices was still low. It was expected that the magnesium price would mainly operate in a multiple stable situation in the later period. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 25000-25100 yuan per ton.

• [Editor:kangmingfei]