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Monthly Report of Ferrosilicon Market in July, 2021

  • Friday, July 30, 2021
  • Source:ferro-alloys.com

  • Keywords:Ferrosilicon Market,bidding,steel,magnesium
[Fellow]The domestic ferrosilicon spot market was in good mood in July.

[Ferro-Alloys.com]

The energy consumption control policy and power restriction measures in major production areas such as Inner Mongolia and Ningxia have been upgraded and tightened; the spot was still tight; futures market rose, showing a strong performance; the quotation of raw materials such as semi-coke was high; ferrosilicon exports in June was over 40000 tons for four consecutive months; the new round of steel bidding has been launched, and the situation is relatively optimistic (the bidding price of ferrosilicon 75B of a steel plant in Jiangsu was set at 9100 yuan per ton in August, up 300 yuan per ton month on month, and the purchase quantity was 3300 tons and the bidding price of ferrosilicon 75B of a steel plant in Guangxi was set at 8900 yuan per ton in cash, up 150 yuan per ton month on month, and the purchase quantity was 1000 tons). Under so many favorable factors, the domestic ferrosilicon spot market was in good mood in July, and the quotation rose steadily, and most of the industry continued to be bullish in a short term.

In the first half of 2021, the domestic steel market was in good situation and into the second half of 2021, many places issued policies to reduce crude steel production, and 23 steel related products cancelled export tax rebates from August 1. In terms of the market in July, the impact of rainstorm and other factors make the downstream demand weak. However, under the relevant policies such as production and power restriction, the supply side also decreases slightly, and the inventory of steel mills decreases continuously four weeks on month. Combined with cost support, it is expected that the steel market will continue to operate in a strong and volatile state in the short term.

In terms of metal magnesium, at the beginning of July, the domestic magnesium market continued weak trend caused by insufficient demand. However, affected by cost support and environmental protection pressure, manufacturers were willing to support prices. By mid-July, the magnesium price began to rise, and the domestic magnesium price broke 20000 yuan per ton again; In the last week of July, driven by the fact that there were always few factories in stock and overseas demand, the price of magnesium rose steadily, and it is expected to remain high and stable in the short term. Current cash quotation including tax of 99.9% magnesium ingots in Fugu area was around 20800-20900 yuan per ton.

Opening price of ferrosilicon futures 2109 contract in May was 8,358, highest price was 9,142, lowest price was 7,906, closing price was 9,058 and the settlement price was 9,028. The trading volumes were 5,318,817 and the positions were 223,636.


  • [Editor:kangmingfei]

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