Magnesium market trend in 2020
On December 4, 2020, the ex-factory cash price of magnesium ingots (99.9%, no pickling, simple packaging) in the main domestic production areas, including tax, was operating strongly, the overall range was 14000-14400 yuan/ton, and the actual order negotiation was mainly.
Specific price range by region
Fugu area ex-factory tax-included cash exchange is 14,100-14300 yuan/ton; Taiyuan area cash exchange is 14,200-14300 yuan/ton; Wenxi area cash exchange is 14,300-14400 yuan/ton; Ningxia area cash exchange is 14,100-14,200 yuan/ton.
Magnesium ingots are national standard (GB/T3499-2011) primary magnesium ingots; non-pickling, no wooden pallets, and non-payment of acceptance price, actual order negotiation is the main focus.
According to SunSirs data, on December 4, the average domestic magnesium ingot market price was RMB 14,266.67/ton, which was an increase of 4.90% from the average market price at the beginning of the month of RMB 13,600/ton; and RMB 12,333.33/ton was an increase from the valley value of the year (9.21). It was 15.68%; compared with the average market price at the beginning of the year (1.1) of 14166.67 yuan/ton, an increase of 0.71%.
The raw material ferrosilicon soared in the afternoon
Affected by the news of staggered production at the Zhongwei plant in Ningxia, the price of ferrosilicon soared in the afternoon, and the futures price rose by the limit. It is reported that Ningxia Zhongwei Alloy Plant will implement production restrictions in winter, starting at 12 o'clock tonight. According to a document from the Zhongwei Industry and Information Technology Bureau, the production limit details: 3 units of Yinhe will stop 2 units, 6 units of Xinhua will stop 3 units, 2 units of Hefa will stop 1 unit, 2 units will stop 1 unit, Yuexin 3 units will stop 1 unit, Maoye stopped 2 for 7 units, 2 for Sanyuan 6 units, 1 for Zhongda Chemical, and 1 for Zotye 2.
Fugu Magnesium Association and Blue Charcoal Association, the industry saves itself
It is reported that the prices of various raw materials produced from raw magnesium and coke powder (blue charcoal, clean charcoal) have continued to rise, especially the soaring price of raw coal, which has made the already high production cost even worse, and the production cost and sales price are serious. Upside down, the pressure on production and operation has increased sharply, and the situation is grim. To this end, Fugu Magnesium Association and Blue Carbon Association held an emergency meeting at 9 am on December 3, 2020 to analyze the current market situation and discuss countermeasures.
Affected by this news, the price of magnesium ingots rose sharply
Previously, due to the impact of the epidemic, the export of magnesium ingots was not smooth, and the demand for the downstream automobile industry was sluggish in the first half of the year, and the demand for new magnesium alloys was weak. Magnesium prices fell continuously from January to September. (Note: The proportion of domestic magnesium ingot exports is relatively high)
Magnesium ingot prices bottomed out in mid-to-late September. It is reported that the average price in the third quarter fell to RMB 12,700/ton, a decrease of 3.3% month-on-month and 14.7% year-on-year. Magnesium smelting profit (after tax) dropped to a low of RMB 775/ton. It was down 60.3% from the beginning of the year.
In late September, the cost factor influencing factors increased, the price was low, the profit was meagre, the willingness of magnesium factories to stand up for prices increased, and the price was tentatively increased for shipment; then the long-short game intensified, and the platform oscillated.
In mid-November, foreign orders focused on purchasing, and the number of enquiries increased. The second round of bottoming and rebound started. After nearly two weeks of rising, the current market has gradually entered a long-short stalemate. Market trading performance has slowed down compared with the previous period, and downstream customers have begun to exercise caution.
At the beginning of December, the willingness of magnesium ingot industry groups to maintain prices rose, and prices rose sharply.
Market outlook is expected
Prices have rebounded, raw material prices have risen, and the willingness of the superimposed industry to maintain prices has risen. The market's bullish expectations have strengthened. SunSirs analysts predict that the probability of stable operation in the near future will increase, and the fluctuation range will be 13,800-15,000 yuan/ton.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.