The tone of steel bidding in September was established last Friday with the bidding price of HBIS Group at 10700 yuan per ton, which increased 1500 yuan per ton and the volume at 2735 tons. The bidding of steel mills was coming to an end this week, and the ferrosilicon spot market continued to operate at a high level, although the range of increase has slowed down. The manufacturer's sales were good, and the market inventory was not much. After a short fall, the futures hit a new high, breaking through 11000 yuan per ton (the highest price was up to 11346 yuan per ton), a new high since the listing of ferrosilicon futures. In addition to the support of production raw material cost, the market mentality was good, and the wait-and-see mood was also strong - on the one hand, there were negative factors such as the production of new arc furnaces in Ningxia and Qinghai, and the strict implementation of production restriction in downstream steel mills. On the other hand, there were continuous news of cut production and power restriction in main production areas. Generally speaking, it's expected that the domestic ferrosilicon market would be easy to rise but difficult to fall in the short term. Wait for the news to become clearer.
As for the downstream market, the domestic steel market has entered the traditional peak season, with obvious demand released, but the supply was still tight due to production restriction policy continued, the speed of inventory declining was accelerated, the futures was pushed up, and the market mentality was more optimistic.
This week, the domestic metal magnesium market was first depressed and then raised, with high consolidation. In the early part of the week, affected by the slowdown of purchase, the magnesium price fell slightly. On Thursday and Friday, with the increase of trading volume, the magnesium price stopped falling and rebounded, rising steadily. The spot inventory at the production end was low, and it's difficult to make great improvement in the short term under the pressure of cost and environmental protection. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was more than 31000 yuan per ton.
Opening price of ferrosilicon futures 2201 contract of this week was 10,480, highest price was 11,316, lowest price was 10,412, closing price was 11,106 and the settlement price was 11,146. The trading volumes were 2,709,157 and the positions were 245,978.