In January, both HBIS Group and Shagang Group set their tender price of ferrosilicon at 8700 yuan per ton, which was higher than the market expectation; The transaction during the winter storage period was coming on well, and it was close to the Spring Festival, many steel mills stock up in advance and the downstream orders were getting more than before; Yulin City issued a notice on the rectification of semi-coke and related industries, requiring all semi-coke and related enterprises in the jurisdiction to conduct a comprehensive inspection, and the illegal projects to stop work and stop production immediately; Shenmu semi-coke Group Co., Ltd. issued a notice on the price increase of semi-coke on Thursday, January 13, with a price of 1800 yuan per ton (ex-factory tax included) for small size. Driven by many factors, the ferrosilicon futures market rose rapidly this week, which led to the increase of spot quotation, greatly boosted market confidence, and it was expected that it would be dominated by strong firmness in the short term.
The opening price of 2205 main contract of ferrosilicon futures this week was 8,520, the highest price was 9,348, the lowest price was 8,492, the closing price was 9,238, the settlement price was 9,174, the trading volume was 1,338,661, and the position was 131,852, a decrease of 8.84%.
Although it is inevitable for the steel plants to resume production in the medium and long term, the influence of the off-season should still be considered in the short term. The production restriction expectation brought by the heating season and the Winter Olympic Games is expected. It is expected that the increase of crude steel production is limited, and there is unlikely to be new production capacity under the "carbon peak & carbon neutralization" goal. At the same time, the Spring Festival is approaching, and the downstream real demand is in a vacuum period. However, considering the economic development and relevant policy support, the demand in the first quarter is not expected to be too bad, and the market sentiment is optimistic. According to the statistical data of China Iron and Steel Industry Association, the average daily crude steel output of key steel enterprises was 1.9666 million tons in early January 2022, down 6% vs. last ten days; The steel inventory of key iron and steel enterprises was 12.9224 million tons, an increase of 1.6255 million tons, an increase of 14.39%; 420100 tons less than the same period last month, a decrease of 3.15%; 104600 tons less than the same period last year, a decrease of 0.80%.
This week, the domestic metal magnesium market fell down . The reason was that the production and supply side remained normal, and Yulin policy had little impact on metal magnesium, but the downstream demand was not followed up, the transaction was general, there was no support of favorable factors, and the market price fell under pressure. With the continuous decline of prices, downstream procurement was more cautious. On Friday, the ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was about 42000 yuan per ton.