This week, the power rationing situation in the main production areas eased slightly, but it still could not be underestimated. The electricity price in Inner Mongolia increased. With the advent of heating season, the expectation of electricity price rise was still strong; The price of semi-coke remained stable at about 3300-3400 yuan per ton, and the price of oxide scale was about 1250 yuan per ton. Limited utilization of capacity as well as cost support, making the spot market generally strong, but the transaction slowed down; Both supply and demand decreased, the futures fluctuated greatly, generally downward, and the market wait-and-see mentality increased.
The weekly opening price of 2201 main contract of ferrosilicon futures this week was 15790, the highest price was 17140, the lowest price was 14000, the closing price was 14104, the settlement price was 14402, the trading volume was 1584500, and the position was 93049, a decrease of 10.26%.
In terms of demand, the steel bidding in October basically came to an end, the steel bidding in November was not open, and the downstream demand needed to be released. This week, domestic steel prices generally fell, the transaction was poor and the wait-and-see mood was strong. In the first three quarters of this year, the domestic crude steel output increased by about 16 million tons compared with the same period last year, which still lagged behind the output decline target set by the Ministry of Industry and Information Technology for the iron and steel industry. Wang Yingsheng, chief economist of China Iron & Steel Association, said on Monday that the crude steel output needed to be further reduced in the fourth quarter. It was roughly estimated that the crude steel output would be reduced by 18.33 million tons from November 15, 2021 to December 31, 2021; Considering that China's total steel demand may fall in the fourth quarter, it’s expected that the steel price would fluctuate at the current level.
The National Development and Reform Commission implemented intervention and control measures on coal prices. The coal prices fell, superimposed on the weak downstream demand, there were few transactions in magnesium market this week, and the quotation was down. Although the inventory and raw material side still supported the magnesium price to a certain extent, the market mostly expected the magnesium price to continue the callback trend, with strong bearish sentiment. On Friday, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 46500-47000 yuan per ton.