Magnesium ingot market prices rose again on the 14th
On May 14, 2021, domestic magnesium ingots (99.9%, no pickling, simple packaging) ex-factory cash tax-included prices are quoted in the range of 21500-22000 yuan/ton in major domestic production areas.
Specific price range in each region
Fugu area ex-factory foreign exchange including tax is 21500-22000 yuan/ton; Taiyuan area is 22000-22100 yuan/ton; Wenxi area is 22,100-22200 yuan/ton; Ningxia area is 21900-22000 yuan/ton.
Magnesium ingots are national standard (GB/T3499-2011) primary magnesium ingots; non-pickling, no wooden pallets, and non-payment of acceptance price, the actual order negotiation is the priority.
After the holiday, the price of a ton soared 4000-5000 yuan/ton
At the end of April, the market quotation in the main production area was raised to 17,400-17600 yuan/ton. After the holiday, the market quotation was high, and low-cost sources were difficult to find. The ton price soared 4000-5000 yuan/ton.
It is reported that on the 8th, downstream end users began to find it difficult to find low-priced goods, and it was not easy to inquire about quotations before the holiday. The market quotations on Monday reached 19,000 yuan/ton, and the next few days continued to rise, reaching a historical market high of 22,000.
This wave of violent upsurges caters to the general trend of the soaring futures commodity market. There is a circumstance in the circle of "don’t bet on tomorrow’s price, you have no skill in buying goods, it depends on buying early." It can also be seen that the recent skyrocketing After-market speculators are bullish and have high sentiment.
At present, the market is well traded, and manufacturers are willing to hold up prices. Traders who stock up in the early stage have demand for profitable shipments. Driven by huge profits, there is a certain bargaining space.
The recent strong surge in magnesium ingot prices is mainly due to the influence of two factors: strong cost support and expected improvement in supply and demand
In terms of cost, the price of raw ferrosilicon has been relatively strong in the past 1-2 years, and the price of magnesium ingots has been relatively weak in the early stage. The impact of cost factors on the price of magnesium ingots is gradually increasing.
The raw material ferrosilicon market is affected by the dual energy control policy of Ningxia, and the low-cost supply has dropped sharply. This is superimposed on the recent continuous operation of ferrosilicon upstream raw material companies to increase the price of blue carbon products. Lantan Shenmu Lantan Group Co., Ltd. successively released about Lantan Group The announcement of a subsidiary company's blue carbon product price adjustment has strengthened the market's expectation that ferrosilicon will maintain a high trend in the short term, but it will be stable and volatile. The support for the cost of magnesium ingots is expected to strengthen.
In the main production area of magnesium ingots, most of the magnesium metal in Shaanxi is a recycling industry of blue carbon-ferrosilicon-metal magnesium. The production of primary magnesium and coke powder (blue carbon, clean carbon) is greatly affected by the price of raw coal, and the production cost remains high. The pressure on production and operation has increased sharply.
At present, the domestic market demand is relatively improving. Buying up instead of buying down, the number of inquiries is increasing, the market spot is not much, and the spot supply is relatively tight.
On the one hand, the manufacturers in the main production areas do not have many inventories. Due to the price of raw materials, the initial operating rate is not high and the production is relatively insufficient. At present, the factory stock is generally low, and some manufacturers have started the pre-sale and shipment mode. On the other hand, raw materials have skyrocketed, and the ex-factory price of magnesium ingots has risen. The magnesium ingot market has been singing all the way, boosting some speculators' hoarding demand. Some downstream small-volume customers seek low-priced sources of goods, and many speculators in the previous hoarding trade mainly profited and settled shipments.
Good domestic demand is expected to strengthen, and imports and exports are also favorable. According to news from exporters, export orders have begun to pick up, and the number of orders has increased. Production abroad has gradually recovered, and the demand for magnesium ingots has rebounded.
Set a new high for nearly nine years
On the 15th, the magnesium commodity index was 127.03, which was the same as yesterday, setting a new historical high in the cycle, an increase of 74.78% from the lowest point of 72.68 on January 10, 2016. (Note: Period refers to 2012-03-01 to present)
Just need to stock up, it is advisable to speculate and stock up, you need to be cautious
At present, coal prices are relatively high and cost pressures are relatively high. In addition, companies currently do not have many inventories, and pre-sale transactions account for a large proportion. Manufacturers are relatively willing to pay for prices. Downstream end users should just need to stock up on appropriate quantities to ensure the dynamic balance of magnesium use in enterprises. If hoarding speculation is the starting point, the current high prices and greater risks will test the ability of hoarding speculators to quickly deliver goods.
The price of magnesium ingots has repeatedly hit new highs, and the short-term surge has increased rapidly. On the one hand, it will test the downstream pressure-bearing capacity. It is expected that the downstream market may have a process of digesting the increase. On the other hand, the magnesium-aluminum price gap has returned to the era when the price of magnesium is higher than that of aluminum, and the price-performance ratio of magnesium is relatively weak.
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