FeSi Weekly Review during Nov 18-22, 2024

FeSi Weekly Review during Nov 18-22, 2024

The floor price of FeSi futures moved up this week, and there is no price advantage for receiving goods at point prices. Downstream demand performance is average, traders purchase according to rigid needs, and some manufacturers have spot accumulation. HBIS's price is 6,550 CNY/Ton (acceptance). In November, the steel plant bidding came to an end, and the market price of FeSi 72% did not change much and maintained a weak and stable operation. The price of FeSi 75% has continued to fall due to the price of downstream magnesium ingots, which has increased the cost pressure on magnesium plants. Purchasing prices were obviously lowered, and the price of FeSi 75% fell. The market price in the latter part of the week was 72% 5,900-6,100 CNY/Ton, 75% 6,500-6,700 CNY/Ton (ex-work by cash, natural lumpy) and the price of 75% fell by 50-100 CNY/Ton.

Export market this week: Export prices have not changed much, and low-price competition at home and abroad is fierce. It is difficult to complete normal quotations in the export market, and foreign customers have significantly lowered prices. The prices are FOB 1,150-1,180 USD/Ton and FOB 75% 1,250-1,280 USD/Ton. The price of FeSi 70% in India is 108,000-115,000 Rs/Ton, a slight decrease of 2,000 Rs/Ton. The downstream demand performance is not good, and the silicon price has fallen slightly.

Downstream market: Magnesium metal: The price of magnesium ingots maintained a downward trend this week. The market transaction price fell to 16,300-16,400 CNY/Ton on Friday, down 350-400 CNY/Ton from last week. After the market price reached new lows in the latter part of the week, the market's urgent purchase volume has been released, but the overall atmosphere of buying up is not unchanged of buying down. The willingness of downstream manufacturers to stock up on goods is still low, and the magnesium market continues to run in a stalemate.

Next week’s forecast: From a cost perspective, the prices of raw materials remain stable and costs remain stable. From a supply perspective, there are both maintenance and resumption factories, and daily output has not changed much. From the perspective of demand, the steel plant bidding in November is coming to an end. The demand for magnesium metal is stable, with export data increasing slightly, but import data increasing simultaneously. As we enter the end of next week, there will be no new trends in the news, and the market is expected to operate stably for the time being.