[Ferro-Alloys.com]

This week, Ferrosilicon Futures fell and ran at a low level. The traditional peak season of "September-October" is nearing the end, 75 # ferrosilicon was relatively strong under the support of magnesium metal market, while the quotation of 72 # ferrosilicon was slightly lowered due to the expectation of more production reduction in downstream steel mills. The enthusiasm of steel mills for purchasing was poor, the market sentiment was gradually pessimistic, and the cautious mentality was enhanced. At present, the supply side of ferrosilicon was generally stable while the terminal demand was sluggish. Although the cost side semi-coke and electricity costs were still supported, in the short term, it was expected to continue to be weak, focus on the Futures market trend, supply and demand changes and the progress of steel tender.

The weekly opening price of 2301 main contract was 8,062, the highest price was 8,146, the lowest price was 7,750, the closing price was 7,876, the settlement price was 7,848, the trading volume was 937,738 and the position was 166,323, down 1.40%%.

Below are Ferrosilicon Futures main contract daily specific performances:

In the downstream, in the fourth quarter, the domestic steel market was in a weak state of operation, downstream demand was weak, raw material prices were high, finished product prices fell, steel mills' losses expanded, and production reduction were expected to increase. According to market news, Minyuan Steel Group stopped production on October 26. According to the data of CISA, in the middle-October 2022, the average daily output of crude steel of key steel enterprises were 2.0649 million tons, a decrease of 2.03% month on month; The steel inventory was 17.7184 million tons, an increase of 1.4015 million tons or 8.59% over the previous ten days. Under the pattern of weak supply and demand, short-term steel prices may be in weak shock operation.

After the rapid rise of magnesium market last week, the domestic magnesium metal market was again affected by the insufficient follow-up of downstream demand this week. The pressure fell back, and the price dropped. Small amount of purchases were mainly based on demand, and orders were generally few. The pressure of market supply exceeding demand remained, and the mood was not very optimistic. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots was about 24600-24700 CNY/T. Without the support of good news, magnesium market was expected to continue its weak operation next week, focusing on the follow-up of transactions.

• [Editor:kangmingfei]