Magnesium price stopped falling and stabilized, the low level rebounded

As of June 7, magnesium prices have stopped falling and stabilized, with a low rise of nearly 1,000 yuan per ton. The specific price range of each region is as follows: Fugu area ex-factory tax-included cash exchange 19000-19100 yuan/ton; Ningxia area ex-factory tax-included cash exchange 19000-19100 yuan/ton; Taiyuan area ex-factory tax-included cash exchange 19100-19200 yuan/ton; Wenxi area The ex-factory tax-included cash exchange rate is 19200-19300 yuan/ton.

The price of raw materials is firm, and the cost side is supportive

Regarding ferrosilicon, it is reported that on June 3, 2021, the Zhongwei City Energy Conservation and Emission Reduction Work Leading Group issued a notice on the implementation of production restrictions for some high-energy-consuming enterprises. The overall limit of ferrosilicon in the region; in terms of coal, some coal mines in Yulin chose to stop online auctions. Affected by the policy, prices have stabilized and the upstream market has risen, causing the price of magnesium ingots to return to 19,000 yuan/ton.

Social inventory is low, supply and demand are tight

In terms of inventory, some magnesium plants were under maintenance in May. In the short term, the inventory is low. As a result, downstream users have a panic attitude and demand has increased sharply. However, due to the price increase of magnesium ingots, some downstream users are not eager to purchase for a while and adopt a wait-and-see attitude.

Outlook

Due to the influence of customers "buying up and not buying down", the surge in magnesium prices last week led to the early saturation of magnesium market demand this week. It is expected that magnesium prices will decline and callback in the short term.

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