[Ferro-Alloys.com]

[Raw Material] The ex-factory quotation for small-sized semi coke was about 950-1050 CNY/T; The factory price of silica was around 180-260 CNY/T; The price of oxide skin was around 980-1010 CNY/T; The price of electrode paste was about 4300-5000 The electricity prices ranged from 0.41 to 0.52 CNY//kWh.

[Spot Market] Driven by the "2024-2025 Energy Conservation and Carbon Reduction Action Plan", the ferrosilicon market in May ended with futures soaring to 8108 CNY/T. At the beginning of this week, the market quickly hit the limit down, continuing to fall to 7172 CNY/T on Tuesday and Wednesday, and slightly rebounding on Thursday and Friday. After all, downstream demand has entered the traditional off-season, and the ferrosilicon market has returned to rationality. At the same time, the spot goods on the production end was still relatively tight; A new round of steel tender has been launched (HBIS Group's June 75B ferrosilicon tender volume was 2200 tons, an increase of 684 tons compared to the previous month; and the price was set at 7550 CNY/T, 250 CNY/T higher than last month), and demand was expected to a concentrated release; The cost side support was stable and strong, and manufacturers were still showing a willingness to raise prices. The quotation for 72# ferrosilicon standard blocks was around 7100-7300 CNY/T, and there was a strong wait-and-see sentiment in the market.

[Futures Market] The opening price of 2409 main contract was 7880 CNY/T, the highest price was 7980 CNY/T, the lowest price was 7130 CNY/T, the closing price was 7302 CNY/T, the settlement price was 7320 CNY/T, the position was 179270 lots, the trading volume was 3058660 lots, and the transaction amount was 114.3931 billion yuan, a decrease of 9.56%.

Below are the Ferrosilicon Futures main contract daily specific performances:

[Demand Market] According to statistics from CISA, in late May 2024, key steel enterprises produced a total of 23.9404 million tons of crude steel, with a daily output of 2.1764 million tons, a decrease of 1.49% compared to the previous period; At the end of May, the statistics showed that steel inventory of key steel enterprises was about 14.5669 million tons, a decrease of 2.2595 million tons or 13.43% compared to the previous ten days; In late May, the social inventory of 5 major varieties of steel in 21 cities was 10.61 million tons, a decrease of 520000 tons compared to the previous month, a decrease of 4.7%, and the inventory continued to decline. Entering June, the overall market demand turned weak, downstream procurement were insufficient, profits declined and manufacturers gradually planned to reduce production. However, the macro environment support is still there, and short-term steel prices may still mainly fluctuate.

This week, due to the decline in the ferrosilicon market and other factors, the domestic magnesium metal market was under pressure and lowered after a brief period of stability. Downstream users were mostly wait-and-see, with average overall demand and limited actual transactions; Under cost support, manufacturers had a strong willingness to stabilize prices. It’s expected that magnesium prices would fluctuate narrowly in the short term, mainly stabilizing. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 18300-18400 CNY/T.Follow up on demand and transaction status.

• [Editor:kangmingfei]