The Ferrosilicon market performed moderately. Demand is slowly recovering

Futures end: The main contract for ferrosilicon 11 closed at 5786, with a margin of+0.94%, up 54, and a daily reduction of 10222 yuan/ton. On the spot side: The sentiment in the ferrosilicon market is average, and the trading atmosphere needs to be strengthened. 72 natural blocks of ferrosilicon in the main production area are priced at 5300-5400 yuan/ton including tax, while 75 ferrosilicon is priced at 5900-6200 yuan/ton.

Supply side: Ferrosilicon saw a slight increase today, while spot prices remained stable. The manufacturer has provided feedback that most downstream purchases are made on demand, and the situation of pre holiday inventory replenishment has not yet been fully reflected. The current production pace is stable, with little overall change. There are occasional cases of furnace start-up after maintenance, but the manufacturer still maintains a focus on shipping. The Lantan market is currently operating steadily, and small materials in the market are still facing a tight shortage situation. Currently, the factory price of small materials, including tax, is reported in cash at 710-810 yuan/ton.

Downstream: As the small holiday approaches, there may be some release of terminal demand. Although demand has rebounded, the speed is relatively slow, and the pattern of strong supply and weak demand is still maintained. The trading atmosphere in the trading market has slightly improved, maintaining stable prices for shipments, and downstream wait-and-see sentiment remains unchanged. The overall operation of the magnesium metal market remains stable, with market prices remaining the same as the previous trading day. Some manufacturers can negotiate sales based on actual orders, and mainstream prices remain stable. Purchasing parties have a strong wait-and-see attitude, with 99.90% magnesium ingots in Shaanxi mainstream factory cash including tax at around 16700-16800 yuan/ton, and mainstream transaction prices at 16650-16700 yuan/ton. Shanxi Wenxi magnesium ingots mainstream factory cash including tax at 16900-17000 yuan/ton.

Overall, speculative demand for ferrosilicon is influenced by market sentiment, with cautious procurement and slow demand recovery. As the holiday approaches, downstream steel mills release demand for replenishment, and the fundamentals of ferrosilicon improve marginally, demand shows an unstable state. In the short term, the market trend tends to adopt a rational wait-and-see attitude