On February 11, 2020, the ex-factory cash price of magnesium ingots (99.9%, non pickling, simple packaging) in the main domestic production areas was stable, and there were not many domestic quotation enterprises. Because the protection and disinfection materials of the front-line workers were difficult to guarantee, there were not many enterprises in various regions that met the comprehensive return to work standard. At present, the cross regional transportation capacity is weak, the domestic delivery and investment is not much, and the home-based inquiry is mainly.

According to the follow-up information of SunSirs, Shaanxi Dongxinyuan Chemical Metal Magnesium is currently in a state of shutdown; Shaanxi Tianyu Magnesium Group Co., Ltd. is preparing for resumption of work approval; Yulin Tianlong Magnesium Industry is reducing production and operation due to transportation problems; traders are unable to enter the market due to transportation problems, and it is difficult for them to enter the market. At present, domestic magnesium market is in a state of price but not market. The change of epidemic situation is observed.

Magnesium market trend

According to the data of SunSirs, the average market price of domestic magnesium ingot on February 11, 2020 was 14,083.33 RMB/ton, and the recent price was relatively stable. Due to the lack of trading volume, some manufacturers have quoted 14,500 RMB/ton.

After the Spring Festival, there are few quoted enterprises in the market. Due to the problems of raw material reserve, transportation and labor safety. It is difficult to guarantee the overall normal production in the near future, and the output of the production end is not much; the sales end is difficult to enter the market due to the transportation problems, and the actual receiving transactions are almost stagnant. Manufacturers have a low willingness to offer and they are mainly wait for the market trend.

Expected market outlook

With the change of commencement policy, it is expected that it will take some time to fully commence. At present, the downstream alloy manufacturers and magnesium powder manufacturers have prepared goods years ago, and the downstream raw material inventory has accumulated to a certain extent. With the effect of return to work convergence, it is expected that the upstream and downstream magnesium ingots will enter the stage of supply and demand stalemate. In the later stage, pay attention to the change of upstream and downstream commencement rhythm.

Data review in 2019

Production end:

According to the preliminary statistical data of China Nonferrous Metals Industry Association, 763,900 tons of original magnesium were produced by China from January to November 2019, an increase of 11.16% year on year. Among them, the cumulative production in Shaanxi is 465,900 tons, up 19.01% year on year; the cumulative production in Shanxi is 108,500 tons, up 13.41% year on year; the cumulative production in Ningxia is 51,500 tons, down 18.51% year on year.

According to relevant statistical data, it is estimated that the domestic original magnesium output in 2019 will be about 927,700 tons.

Consumer end:

According to relevant statistics, the domestic consumption is 472,300 tons. In terms of import and export, it is estimated that 446,500 tons of various magnesium products will be exported. According to the statistics of the General Administration of customs, from January to November 2019, China exported 409,300 tons of various magnesium products, a year-on-year increase of 9.29% and a cumulative amount of US $1.048 billion, a year-on-year increase of 12.08%. Among them, the total export of magnesium ingot is 217,900 tons, up 14.54% year on year; the total export of magnesium alloy is 100,900 tons, down 0.61% year on year; the total export of magnesium powder is 77,900 tons, up 6.88% year on year.

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