SunSirs: Magnesium Prices All the Way down in March, a Drop of 5.27%

Overview of market conditions

According to SunSirs data, as of the 31st, the average market price of magnesium ingot was 13,783.33 yuan / ton, compared with the market average price of 14,550 yuan / ton at the beginning of the month, a monthly decline of 5.27%.

According to SunSirs, on March 31, the mainstream quotation range of magnesium ingots (99.9%) in Fugu region was 13,500-13,700 yuan / ton; the mainstream quotation range of magnesium ingots (99.9%) in Ningxia region was 13,650-13,750 yuan / ton; The mainstream price range of magnesium ingots (99.9%) was 13,750-13,850 yuan / ton in Taiyuan; the mainstream price range of magnesium ingots (99.9%) in Wenxi area was 13,850-14,000 yuan / ton.

Bad demand and worrying export

At present, domestic demand is gradually picking up in March, and the rate of resumption of work in downstream areas is increasing day by day. At present, it has basically returned to the level before the Spring Festival. However, based on the general environment of bulk commodity declines, traders and downstream users are less willing to store goods, and they need to purchase small quantities. In mid-late February, due to traffic problems, the backlog of shipments in the main producing areas, more futures delivery in March, the mainstream manufacturers have strong demand for new orders, have lowered the previous higher quotations, the market returned to normal.

In March, the international market was greatly affected. East Asia, Europe and the United States were affected by the new crown epidemic, and exports of magnesium ingots weakened. It is reported that in 2019, a total of 452,000 tons of various magnesium products were exported, accounting for 46.6% of magnesium output. Worries about exports have affected domestic market sentiment.

Forecast

Downstream demand is weak. At present, the price of magnesium ingot is returning to normal. It is expected that the recent stable and volatile operation will mainly focus on the changes in the procurement rhythm of the downstream market.

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