Monthly Report of Ferrosilicon Market in December, 2021

  • Friday, December 31, 2021

  • Keywords:ferrosilicon futures, ferrosilicon spot, ferrosilicon demand, steel market, magnesium market
[Fellow]In December, the domestic ferrosilicon market continued to operate weakly.


[Ferrosilicon Market] In December, the domestic ferrosilicon market continued to operate weakly, news about the resumption of production in the main producing areas came out again, and the supply side was relatively stable, but the downstream demand was insufficient, and the high price transactions were not optimistic. Until the end of the month, there was still little information on steel bidding in January; In terms of raw materials, the price of semi-coke continued to callback to about 1600-1700 yuan per ton at the end of the month, and the cost support was further weakened; Currently, there was no obvious good stimulation in the spot. The quotation at the end of the month was about 200 yuan per ton lower than that at the beginning of the month. Considering cost pressure, factories was reluctant to reduce the price, and wait-and-see mood was strong. However, after all, a new round of steel recruitment was imminent, coupled with the arrival of winter storage period and the increase of resumption of production of steel mills, ferrosilicon market had supports. Pay attention to the bidding information of representative steel mills in January and the trend of futures market.

[Futures Market] The opening price of 2205 main contract of ferrosilicon futures in December was 8,604, the highest price was 9,198, the lowest price was 8,132, the closing price was 8,312, the settlement price was 8,388, the trading volume was 2,519,993, and the position was 74,601, a decrease of 3.80%.

[Ferrosilicon Exports] According to data of China Customs, in November 2021, China exported 55115.596 tons of ferrosilicon (containing by weight more than 55% of silicon), an increase of 90.77% month on month and 253.01% year-on-year. From January to November 2021, China exported 465566.727 tons of ferrosilicon (containing by weight more than 55% of silicon), an increase of 94.66% year-on-year. From January to November 2021, China exported 20161.905 tons of ferrosilicon (containing by weight ≤ 55% of silicon), an increase of 14.87% year-on-year. The global market was not bad.

[Steel Market] Affected by the season and low temperature, the demand for steel in December was still not prominent; Under the influence of factors such as limited production in winter, uncertain demand and unsatisfactory price, the willingness of winter storage was not strong. Although some steel mills had successively issued winter storage policies, they were less enthusiastic than in previous years and were more cautious about the trend in the later period; On the other hand, some enterprises had plans to resume production and start work, and the pressure of supply and demand may be further increased. It was expected that the steel market would still readjust weakly in the short term.

[Magnesium Market] In the early period of this month, due to the continuous low factory inventory, the magnesium price remained high and strong, but the demand was not followed up, the acceptance of high prices in the downstream was still finite, and the price gradually fell down; In the late-December, affected by environmental supervision, the price of magnesium jumped to 50000 yuan per ton. At present, both sides of supply and demand were cautious and wait-and-see mood was strong, waiting for the clarity of relevant environmental protection policies. At the end of the month, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 49000-50000 yuan per ton.

  • [Editor:kangmingfei]

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