Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints of the Report - After profit improvement, production has rebounded rapidly in recent weeks, and inventory has also increased. The price of Ningxia semi - coke has risen at the cost end, and the overall demand for steel is still weak. The weekly K - line of the ferrosilicon main contract is below the 60 - day moving average, showing a bearish trend. The exchange has restricted positions twice in the past month, causing market sentiment to decline and the sector to weaken. The main contract of ferrosilicon is expected to fluctuate [6]. Group 3: Summary According to the Table of Contents 1. Week - to - Week Summary - **Macro - aspect**: DCE restricted the daily opening volume of coking coal futures JM2601 contract since August 15, 2025, leading to a decline in market sentiment. China's August LPR remained unchanged. Overseas, Putin put forward requirements for Ukraine, and the Fed's July meeting minutes released hawkish signals [6]. - **Supply - and - demand**: After profit improvement, production and inventory have increased in recent weeks. The price of Ningxia semi - coke has risen, and the demand for steel is still weak. The spot profit in Inner Mongolia is - 235 yuan/ton, and in Ningxia is - 60 yuan/ton [6]. - **Technical**: The weekly K - line of the ferrosilicon main contract is below the 60 - day moving average, showing a bearish trend [6]. - **Strategy**: Since the exchange has restricted positions twice in a month, market sentiment has declined, and the sector has weakened. The main contract of ferrosilicon should be treated as a fluctuating operation [6]. 2. Futures and Spot Market - **Futures market**: As of August 22, the position of ferrosilicon futures contracts increased by 9,158 lots to 443,000 lots, and the monthly spread increased by 12 points. The number of warehouse receipts decreased by 442 to 20,474, and the spot price in Ningxia decreased by 150 yuan/ton to 5,460 yuan/ton [8][12][16]. - **Spot market**: As of August 22, the basis increased by 150 points to - 262 yuan/ton [21]. 3. Industry Chain Situation - **Production**: As of August 21, the national operating rate of 136 independent ferrosilicon enterprises was 36.52%, up 0.34% week - on - week. The daily average output was 16,205 tons, up 0.50% (80 tons) week - on - week. The weekly demand for ferrosilicon in five major steel products decreased by 0.19% week - on - week, and the national ferrosilicon output was 113,400 tons. Production has rebounded rapidly for six consecutive weeks [27]. - **Inventory**: As of August 21, the national inventory of 60 independent ferrosilicon enterprises was 62,080 tons, down 4.76% (3,100 tons) week - on - week [30]. - **Upstream**: As of August 18, the electricity prices in Ningxia and Inner Mongolia remained unchanged. As of August 21, the average price of Ningxia semi - coke increased by 20 yuan/ton to 656 yuan/ton. As of August 22, the spot production cost in Ningxia increased by 40 yuan/ton to 5,390 yuan/ton, and in Inner Mongolia increased by 35 yuan/ton to 5,535 yuan/ton. The spot production profit in Ningxia decreased by 205 yuan/ton to - 60 yuan/ton, and in Inner Mongolia decreased by 185 yuan/ton to - 235 yuan/ton [36][42]. - **Downstream**: The daily average hot metal output of 247 steel mills increased by 0.09 million tons week - on - week to 2.4075 million tons, and increased by 16.29 million tons year - on - year. From January to July 2025, the total export volume of ferrosilicon was 236,000 tons, a decrease of 4.91% compared with the same period last year. The ferrosilicon tender price in August was 5,700 yuan/ton, an increase of 100 yuan/ton compared with July [44][46].