Market prices for magnesium ingots went up on April 26

On April 26, 2021, the main production areas of domestic magnesium ingots (99.9%, no pickling, simple packaging) ex-factory cash price general range quotation range of 17200-17600 RMB/ton, the actual bill is mainly discussed.

The specific price range of each region is as follows:

Fugu area ex-factory tax-inclusive spot exchange of 17200-17400 RMB/ton; Spot exchange of 17400-17500 RMB/ton in Taiyuan area; Wenxi area spot exchange 17500-17600 RMB/ton; Ningxia area spot exchange 17300-17400 RMB/ton.

Magnesium ingot is the national standard (GB/T3499-2011) original magnesium ingot; No pickling, no wooden pallet, and non - payment acceptance price, the actual order mainly negotiated.

10-day Ton Price Skyrocketed 1600-1800 RMB/ton

According to the data of the SunSirs, the market quotation of the main producing areas began to rise on the 19th, from the range of 15600-15800 RMB/ton on April 16th to 17200-17600 RMB/ton on April 26th, with a range of 1600-1800RMB/ton.

The reason for the surge

Recent magnesium ingot prices strong rebound, mainly based on the impact of two factors.

Supply and demand side, the current market demand is relatively improved, the number of inquiries increased, the market spot is not much, supply and demand are relatively tight.

On the one hand, demand has improved recently. Aluminum prices rose sharply and broke through the 80,000 level. In the past year or two, with the rise of aluminum prices, magnesium prices are relatively weak, and the cost performance of downstream magnesium increases. On the import and export side, export orders have picked up, according to exporters, and order volumes have increased. Foreign production gradually recovered, the demand for magnesium ingot has picked up.

On the other hand, supply is relatively tight. The main production area manufacturers have a small inventory, affected by raw material price factors, the early operating rate is not high, the production is relatively insufficient. The current factory spot is generally less, some manufacturers open the pre-sale shipping mode.

On the cost side, the price of ferrosilicon is relatively strong in the recent 1-2 years, and the price of magnesium ingot is relatively soft. Cost factors on the impact of magnesium ingot prices in the gradual amplification of factors. The Ferro market is affected by the Ningxia energy double control policy, the low price supply of goods decreased, the market in the short term trend of ferrosilicon holds high partial stability of the expected strengthening.

Magnesium ingot main production area, Shaanxi magnesium metal is mostly blue carbon - borosilicate - magnesium recycling industry, raw magnesium and coke (blue carbon, clean carbon) production is greatly affected by the price of raw coal, high production costs on production and management pressure increased sharply.

Future forecast

Overall, the current domestic shipment situation is good, part of the pre-sale trading. Business analysts believe that based on the coal price is at a relatively high level, the cost pressure is greater, and the current inventory of enterprises is not much, pre-sale transactions account for a large proportion, manufacturers are relatively sufficient to support the price, but based on the current price increase has been large, testing the downstream pressure capacity, the market is expected to have a process of digesting the increase.

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