Magnesium ingot raw materials prices were weak before CNY holiday [SMM analysis]

The ferrosilicon market was overall stable this week. As of this Friday, the market price of 72 ferrosilicon was around 6,450 yuan/mt, which was basically the same as last week's market price. As the Spring Festival is approaching, the market has a strong holiday atmosphere. Most downstream companies have completed their year-end stocking operations, and the market transactions are generally light. In terms of steel plant bidding, the price of Baosteel's 75B ferrosilicon in February was 6,850 yuan/mt including tax at the factory, which was 200 yuan/mt lower than the previous month.

In terms of semi coke, the semi coke market is generally stable this week. The mainstream price of small and medium-sized materials in Fugu is 970-1,200 yuan/mt, and the mainstream price of small and medium-sized materials in Shenmu is 950-1,130 yuan/mt. In the past month, the price of semi coke has continued to fall, and profits have continued to shrink. The price of coke semis has reached a low level, and the supply side is not very willing to ship at low prices. Some factories in the Shenmu area have chosen to reduce production due to profit inversion. A large local coke semis enterprise said that due to the recent continued weak prices of calcium carbide and ferrosilicon, the downstream support of coke semis is weak, and it is expected that the price of coke semis will continue to be under pressure in the future.

At present, the downstream magnesium plants have completed pre-holiday purchases. The magnesium market has a strong holiday atmosphere and market transactions have become colder. It is expected that magnesium ingot prices will maintain stable operation in the week before the holiday.