[Ferrosilicon Market] In November, the domestic ferrosilicon market continued to operate weakly, the production side gradually recovered, the willingness to sell was strong, and the downstream inquiry was relatively negative (although the inquiry increased in the latter ten days, the actual transaction was still poor). In addition, the price of semi-coke was declined to about 1700-1900 yuan per ton, the cost support was weakened, the spot price was under pressure, and the inventory gradually accumulated slightly, there was a strong mood of cautious wait-and-see. In terms of steel mills, due to the expectation of limited production, the bidding volume was reduced, and most of them purchase on demand. In November, the bidding volume and price of representative steel mills decreased significantly; And the follow-up bidding price was lower and lower. Some steel mills were bearish on the market and delayed purchasing, and the steel bidding in December was also delayed. The futures market rebounded in late November, the spot market stopped falling and rebounded under the expectation of production reduction and rising futures market, and the inventory decreased (most manufacturers had no inventory at the end of the month), Unfortunately, after all,the foundation was unstable, and the weak operation continued after a short rebound. However, considering the production cost pressure of ferrosilicon, it was unlikely that the spot price dropped significantly. We should pay attention to the change of supply and demand and the new round of bidding of representative steel mills.

[Ferrosilicon Exports] According to data of China Customs, in October 2021, China exported 28891.41 tons of ferrosilicon (containing by weight more than 55% of silicon), a month on month decrease of 11.33% and a year-on-year increase of 102.92%.

[Steel Market] According to data of China Iron & Steel Industry Association, on November 12, the comprehensive price index of domestic steel was 136.81 points, down 13.2% from the end of September and up 22.1% from the same period last year; The price of rebar was 4643 yuan per ton, down 18.6% from the end of September; The price of hot rolled coil was 5009 yuan per ton, down 14.9% from the end of September. Steel prices have fallen back to the level of early March this year. According to data of China Customs, China exported 4.497 million tons of steel in October, down 8.6% month on month; Imported steel was 1.127 million tons, down 10.3% month on month. Affected by the sharp drop in costs and weakening demand, the overall trend of domestic steel market was weak in November, and many steel mills issued maintenance plans. In addition, with the cold weather in the North, the seasonal demand was weakened, the procurement was depressed, and the market sentiment was pessimistic. What’s more, the environmental protection and production restriction in Beijing, Tianjin and surrounding areas were strict, the negative factors still prevailed, and the probability in the later stage would still be dominated by a weak trend.

[Magnesium Market] In November, the domestic metal magnesium market experienced several ups and downs. The factory had a strong willingness to support the price with the support of small inventory and favorable policies for Dongchu; However, the downstream purchased more on demand, with flexible rhythm, and the two sides would still be in a game situation in the short term. At the end of the month, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 35000-36000 yuan per ton.

[Futures Market] The opening price of 2201 main contract of ferrosilicon futures in November was 11360, the highest price was 11396, the lowest price was 8136, the closing price was 8626, the settlement price was 8726, the trading volume was 3883291, and the position was 70915, a decrease of 22.55%.

Below are ferrosilicon futures main contract 2201 daily specific performances: