Magnesium market trends

On May 26, 2020, the price of ex-factory cash inclusive of magnesium ingots (99.9%, no pickling, simple packaging) in all major Chinese production areas was lowered. At present, the mainstream quoted price range is 13,150-13,400 yuan / ton.

According to SunSirs follow-up, the tax-exempt cash in the Fugu area is 131,500-13,300 yuan / ton; the Taiyuan area is 13,250-13,350 yuan / ton; the Wenxi area is 13,300-13,500 yuan / ton; the Ningxia area is 13,200-13,300 yuan / ton.

According to SunSirs data, the average domestic market price on the 25th was 13,216.67 yuan / ton, which was an increase of 0.89% from the average market price of 13,100 yuan / ton at the beginning of the month; the average market price was 14,166.67 yuan / ton from the beginning of the year (January.1), a decrease of 6.71%.

The raw material ferrosilicon market is rising, the cost side is strong

On the supply side, production of ferrosilicon factories was reduced in May, and most factories mainly ordered production. The market situation is warming up. It is reported that an enterprise in Shaanxi Fugu recently resumed production of a 40,500Kva mine thermal furnace, which mainly produces ferrosilicon 75A.

On the demand side, it is reported that Xinyu Iron & Steel issued a bidding price for ferrosilicon in May, which included tax acceptance of 5,800 yuan / ton and 5,830 yuan / ton, which increased by 100 yuan / ton and 130 yuan / ton compared with April, with a quantity of 1,500 tons; Jiangsu Zhongtian Iron & Steel announced the bidding price of ferrosilicon in May, the tax-included acceptance price for the plant was 5,750 yuan / ton, up 150 yuan / ton from April, and the quantity was 2,000 tons. There was no change from April; Finalized at 5,760 yuan / ton, an increase of 140 yuan / ton from April, and the purchase quantity of 1,000 tons; Shaanxi Iron and Steel Group ’s May Ferro Silicon 75B tender price was finalized at 5,657 yuan / ton, an increase of 121 yuan / ton from April prices The quantity of this purchase is 2,350 tons.

Ferrosilicon steel has continued its upward trend. It is reported that Lianyuan Steel finalized the purchase price of ferrosilicon 75B in June at 5,980 yuan / ton, compared with May ’s increase of 230 yuan and the purchase volume of 1,800 tons; The purchase price of 75B is 6,000-6,130 yuan / ton, which is 180 yuan / ton higher than the average price in May.

The raw material ferrosilicon market is getting better, and the price is rising, which leads to upward pressure on the cost end of magnesium ingots and strong support on the cost side.

Weak demand and supply

Affected by emergencies, downstream demand for overseas automobiles, die casting, aluminum plants, etc. has decreased, and demand has weakened at the export end. Exporters mainly pay for demand on demand; the domestic industry is gradually recovering.

At present, manufacturers' willingness to overhaul is on the rise. On the one hand, prices are sluggish, and inventory pressure is appropriately reduced; on the other hand, as summer approaches, the overhaul cycle is coming and inertia reduces production.

Low price, just need support, the market is stable and improving

Although the recent downstream demand is weak and the main demand is just purchase, the current price of magnesium ingots has been low for the past four years. With the gradual recovery of the Chinese downstream market, the overhaul season is coming, and the need for support is strong. It is expected that the recent magnesium market game will intensify. The interval is between 13,100-13,600 yuan / ton, and we will pay attention to the changes in the purchasing rhythm of the downstream market.

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