Price trend

According to the data monitoring of SunSirs, as of the 21st, the average price of domestic magnesium metal market was 25,133.33 RMB/ton. This week, the domestic magnesium metal market showed a trend of first restraining and then rising. The first half of the week was affected by weak demand, with a decline of 100-300 RMB/ton; The price rose strongly in the late week, boosted by the news that the production of semi-coke was greatly reduced.

Analysis review

Raw materials

Influenced by the news of "Fugu Semi-coke Furnace Transformation Plan" on the afternoon of the 19th, the production equipment required by environmental protection will be shut down on the 25th of this month, and nearly half of the capacity will be removed. The magnesium price was generally upward, rising by 500-600 RMB/ton. The market quotation was relatively chaotic, but the news had not been confirmed, and the impact on the subsequent production of magnesium ingots was unknown.

The average market price of ferrosilicon in Ningxia was 8071 RMB/ton. Under the high raw material price and transportation cost, the price of ferrosilicon remained relatively high, while the coal market remained high due to the active supply and demand, which had a certain supporting effect on the price of magnesium ingots.

Downstream

From the perspective of supply and demand, the prices of magnesium powder and magnesium alloy in the downstream first decreased and then increased along with that of magnesium ingots. The overall demand did not change much, the market transaction was relatively cold, and the enterprise production starts did not change much.

Market outlook

In general, the raw material silicon coal has provided some support for the magnesium market, but the overall weak demand still restricts the driving force of the magnesium price rise. In the short term, under the fermentation of the news of Semi-coke, the magnesium price will maintain a strong operation, but it is still needed to pay attention to the sustainability of the improvement of Semi-coke on the recovery of magnesium price.

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