Price trend of metallic magnesium

Market analysis last week

According to the monitoring data of the business agency, as of the 27th, the average price in the domestic market was 31333.33 RMB/ton, down 8.74% on a weekly basis. This week, the magnesium ingot Market first fell and then stabilized. With the increase of inventory pressure and the weakness of downstream demand, the price support mentality of merchants weakened. Until the late part of the week, the price returned to stable, and the factory stabilized again. The market price remained around 30000-31000 RMB/ton.

Macro aspect

It is understood that EU policy makers have launched an action plan to restart magnesium production in the EU, and at least three companies are carrying out projects. At present, China's supply of magnesium to the EU accounts for more than 90% of the total demand for magnesium in the EU. The European Commission is concerned that any decline in China's export volume may inhibit the production of automobile, aircraft parts and other magnesium dependent products. The EU plans to resume the original magnesium production, and puts forward the goal of reducing dependence on China, a major producer, which may greatly hit the magnesium ingot Market.

Supply and demand

As for the factory, the overall production efficiency is relatively stable. The decline in magnesium ingot prices this week has released a small part of the inventory, but the inventory pressure is still on. In terms of demand, the demand performance of magnesium ingots is not optimistic, and the market sentiment is low. Many downstream customers believe that the price of magnesium ingots may fall below 30000. Customers who are not in a hurry to replenish are more cautious in placing orders.

Upstream and downstream

On the cost side, the mainstream quotation of ferrosilicon in Ningxia this week is around 8700-8900 RMB/ton, and the average market price is 8787 RMB/ton. Ferrosilicon has been trading sideways for more than a week, and the performance of spot and futures is mostly stable. There is outflow from the delivery warehouse, the inventory accumulation speed on the manufacturer side is general, and the overall demand of the downstream has not been released. After the market price of blue carbon rose, it remained stable, low-cost resources decreased, and a small number of individual enterprises accumulated reserves. The supply of blue carbon in Xinjiang market was in short supply, and the market demand remained unchanged. At the downstream end, the magnesium powder and magnesium alloy market was weak this week. In April, the operating rate of magnesium powder manufacturers was 35.43%, 39.97% in the same period last year, 14.32% lower than that of the previous year, and 11.36% lower than that of the previous year. Under the weak demand, the production enthusiasm of magnesium powder and magnesium alloy factories was also affected, and colleagues' enthusiasm for purchasing magnesium ingots also decreased.

Aftermarket forecast

At the end of the month, the magnesium plant collected funds and reduced inventory pressure. It mostly followed the market, and downstream customers were still cautious. This week, the price of magnesium ingots decreased, and there were a few transactions in the market, but the overall pattern of oversupply was difficult to change. Analysts of the business club believe that the saving of RMB30000 is the psychological defense line of many magnesium ingot merchants. Considering the cost control of magnesium plants, there is a certain resistance to the continued decline of magnesium ingot prices. It is expected that the magnesium price will stabilize around RMB30000 in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.