In November, the daily average price of domestic magnesium ingots fluctuated between 22000-22600 RMB/ton, and the average price in the cycle was 22225.29 RMB/ton, with a rise and fall of - 2.36%. At the beginning of this month, the magnesium ingot market was first restrained and then improved. With the relaxation of control over epidemic prevention by the state, the logistics improved and downstream factories began to replenish their warehouses. With the increase of the quotation, the price of Changjiao slows down, and the magnesium price gradually weakens. The price returns to the 2200 node again, and soon falls behind. At the end of the month, there was no obvious change in the magnesium market. The market was mainly weak and stable. As the market price fell, some downstream customers just needed to replenish. The market atmosphere was still cautious.

According to the price monitoring of the SunSirs, as of December 29, the taxable spot exchange in the magnesium ingot market was 22033.33 RMB/ton, down about 500 RMB/ton from the beginning of the month, or 2.36%, down 55.03% from last year.

Market analysis

Export

According to customs statistics, China exported 24700 tons of magnesium ingots in November, up 3.04% year on year. In the past two months, magnesium exports have rebounded significantly. From January to November 2022, the export of various magnesium products will be 460500 tons, an increase of 10.19% over the same period last year. It is expected that the annual export volume will hit a new record high.

Output

From January to November 2022, China's communist raw magnesium was about 825300 tons, up 0.27% year on year. Among them, the output of Shaanxi in November was about 40700 tons, down 9.77% month on month and 15.56% year on year. The cumulative output of Shaanxi from January to November was about 508800 tons, up about 0.97% year on year; The output of Shanxi Province in November was about 17000 tons, down 7.61% month on month, roughly the same as that of the same period last year. The cumulative production from January to November was about 185400 tons, up 3.34% year on year.

Raw materials

Ferrosilicon rose 0.97% in December

In terms of ferrosilicon, on the 29th, the average market price in Ningxia was 8164.29 RMB/ton. The price of 12 ferrosilicon fell first and then rose. The profits of ferrosilicon manufacturers at the supply end were significantly improved, their enthusiasm for production was increased, and the supply would further increase. It is expected that the price of ferrosilicon will not fluctuate in the short term.

Recently, the price of semi coke has been stable. The low price of small materials in Fugu is 1410-1520 RMB/ton, and the high price is 1660-1800 RMB/ton. The price of raw material lump coal has great resistance to rise. Some semicarbon enterprises look to stabilize the coal price, and it is difficult for the cost support of semicarbon to change significantly in the short term.

Future market forecast

In general, the magnesium market is in a dilemma of rising and falling. Although there is cost support on the market, the demand side on the lower side is insufficient. Considering the price of magnesium and the cost inversion, it is expected that the difficulty will increase. At the end of the Christmas holidays abroad, the replenishment orders just needed were released. After the New Year's Day, the number of workers returning to work after the domestic epidemic infection increased. It is estimated that the magnesium market will operate in a small amplitude in early January after the purchase of goods before the Spring Festival.

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