Magnesium market trend

In November, the price of magnesium ingot went down step by step. According to the data of business agency, the average market price of magnesium ingot (9990) as of November 29 was 14133.33 yuan / ton, a decrease of 3.53% compared with the average price of 14650 yuan / ton at the beginning of the month (09.01). At present, the price has been in the annual trough, which is 17.03% lower than the price at the beginning of the year..

Weak demand magnesium price moves down

In November, the demand for magnesium ingots was relatively weak as a whole, with domestic rigid demand mainly purchasing, and traders mainly waiting or short order fast in and fast out. Although there is a short-term external purchase within the month, the overall purchase volume has not changed significantly.

At present, the actual transaction price of magnesium ingot in the main production area is below 14000 yuan / ton, the price is low, the willingness of some manufacturers to hold up the price is strengthened, and the supply of low-cost goods is reduced compared with the previous period.

According to the tracking data of the business agency, on November 29, 2019, the price range of ex factory cash including tax of magnesium ingots (99.9%, non pickling, simple packaging) in the main domestic production areas is as follows:

The ex factory spot exchange including tax in fugu area is 13900-14050 yuan / ton; the spot exchange in Taiyuan area is 14100-14200 yuan / ton; the spot exchange in Wenxi area is 14100-14300 yuan / ton; the spot exchange in Ningxia area is 13950-14100 yuan / ton.

Forecast for future market

In the short term, it is difficult to change the declining trend of fundamentals, but with the low price, approaching the cost line, magnesium companies’ willingness to stand up for the price increases, the long short game will become increasingly fierce, and it is expected that the operation will be stable in the near future.