【Spot side】
In March, Hegang Group’s 75B ferrosilicon bidding volume was 1,640 tons, and the bidding price was low, which further lowered market confidence. The futures market fluctuated downwards, and even hit a new low in the past three years. The willingness to purchase downstream is average, and the acceptance of high prices is low. The ferrosilicon market is operating under pressure. News of production cuts and maintenance have been reported in production areas such as Ningxia (most of the production companies that have previously stopped production for maintenance or peak avoidance have not yet resumed production), but this has not yet boosted the market. , the market transactions have not improved significantly, and manufacturers have lowered their quotations under the pressure of shipments. At the end of the month, the quotations of 72# ferrosilicon processing blocks fell, and the quotations of 75# ferrosilicon processing blocks fell.
However, considering that the downstream steel market will pick up, demand in April is still expected to improve.
【Demand Market】
Downstream steel market: The steel industry continued to operate weakly in March 2024. After the Spring Festival holiday in March, the overall downstream construction performance was poor, demand was slow to be released, and transactions lacked outstanding performance. In addition, the inventory accumulated during the Spring Festival was still relatively large, and many merchants were not optimistic. Steel prices have continued their downward trend since February, with Shanghai rebar falling and current prices approaching the lows of 2020. Many steel companies have chosen to suspend production for maintenance to cope with the current severe situation. The decline in production has led to a decline in raw material procurement and an overall decline in raw material prices. However, although steel prices have been falling, due to the current simultaneous decline in steelmaking costs, corporate profits on some varieties are still guaranteed. It is expected that as the weather gets warmer in April, projects in construction, infrastructure and other fields will gradually start. The demand for steel products is expected to continue to grow, but the room for growth is limited; steel plant production may rebound to a certain extent; raw material and steel prices fluctuate. Weak run.
Downstream magnesium market: Under the periodic supply and demand imbalance pattern, superimposed on the decline in raw material prices, in early March, magnesium prices continued to decline, and the mood was pessimistic. The mentality of “buying up, not buying down” made downstream operations more cautious. In the middle of March, magnesium prices even soared. People are caught off guard and fall at a speed. However, there is no market that can only rise but not fall, and there is no market that can only fall but not rise. By late March, with the increase in trading volume, magnesium prices finally stopped falling and rebounded after a month of continuous decline. However, considering that the contradiction between supply and demand still exists, and magnesium prices have fallen or risen too fast, many users are still waiting and watching. Whether magnesium prices can hold up depends on subsequent market demand and transaction follow-up.
