Price trend

In September, the daily average price of domestic magnesium ingots fluctuated between 24,000-26,000 RMB/ton, the average price during the cycle was 25,164.28 RMB/ton, and the commodity rose and fell by -3.80%. At the beginning of the month, the magnesium ingot market was affected by demand, and the price fell all the way to the level before the price increase; the demand in the middle and lower reaches of the month improved slightly, but the increment was limited. The price of magnesium ingots also remained weak, but at the same time, supported by the high cost of coal and ferrosilicon, factory quotations remained stable. At the end of the month, with the National Day holiday approaching, the downstream started purchasing plans one after another. In addition, the price of raw materials was high, and the price of magnesium rose steadily. However, there were few actual transactions in the market, and some manufacturers secretly reduced the price for their shipments.

According to the price monitoring of SunSirs, as of September 29, the market price of magnesium ingots including tax was 25,333.33 RMB/ton, down about 1,000-1,500 RMB/ton from the beginning of the month, down 3.80%, and down 50.97% year on year.

Analysis review

Export

According to customs statistics, China exported 2,140.1 tons of magnesium ingots in August, a decrease of 14.2% month-on-month and a year-on-year decrease of 4.5%, and the cumulative export increased by 8.6% year-on-year. The export of magnesium ingots fell for three consecutive months, mainly due to the impact of the European energy crisis, the reduction of production by overseas companies, and the weakening of demand.

Production

In August, China's magnesium ingot production was 73,774 tons, an increase of 6.48% month-on-month and 30.57% year-on-year. The operating rate was 56.78%, an increase of 6.48% month-on-month and 11.53% year-on-year.

Raw materials

In terms of ferrosilicon, ferrosilicon futures and spot prices continued to improve. Affected by the public health security incident, the Zhongwei area of Ningxia entered a closed state, and the shipment and circulation links were not smooth. The futures market rose sharply, and the quotations of manufacturers increased one after another, and the transaction prices followed suit.

In terms of coke, the coke market experienced a round of decrease in September, with a cumulative increase of 100-110 RMB/ton. During the month, coke enterprises started a round of increase, but due to the unsatisfactory sales of downstream finished products, as of the 29th, it failed to land. At present, Jiaozuo Iron and Steel Group has a strong game mentality, and it is expected that the coke price will remain stable and strong.

In September, the price of semi-coke stopped falling and rose again. The price of lump coal at the raw material end continued to rise, the price of flour coal rose significantly, and the price of lump coal also rebounded slightly, which supported the price and cost of semi-coke. In addition, in mid September, Shenmu Semi-Coke Group issued a notice of price increase, which was implemented from the 20th: 2,000 RMB/ton for large materials, 1,900 RMB/ton for medium materials, 1,850 RMB/ton for small materials, and 1,300 RMB/ton for semi-coke powder.

Market outlook

The market demand is weak, and it is difficult to conclude a transaction at a high level, the space for magnesium price rise is limited. In view of the current high cost, supported by the cost, the magnesium plant's quotation is stable. On the whole, the supply and demand sides are deadlocked, and it is expected that the magnesium market will consolidate in the short term.

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