Price trend of metallic magnesium
| PVA 1788 (PVA BP17) |
Market analysis this week
According to the monitoring data of the business agency, as of the 17th, the average price in the domestic market was 26833.33 yuan / ton, down 0.62% on a weekly basis. The market price of magnesium ingots decreased slightly this week. After the centralized procurement last week, the market transaction performance this week was not positive. The downstream demand was mostly just for procurement. The market returned to rationality again, and there were signs of bottoming out and stabilizing again.
Supply and demand
The pattern of supply exceeding demand still exists. As the temperature rises, some factories begin to overhaul, the production of magnesium plants follows the change, the inventory remains flexible, the price of magnesium ingots still hovers near the cost line, and the willingness of factories to ship at low prices is reduced. On the demand side, after releasing part of the demand last week, the market mentality returned to rationality again, the market supply of low-cost goods became less and less, and the actual order trading volume this week was not ideal.
Upstream and downstream
| PVA |
Ferrosilicon futures fell, bidding prices fell, market confidence was frustrated, spot prices also showed a trend of correction, cost side support weakened, and magnesium ingot prices also fell along with raw ferrosilicon. The price rising sentiment of Lanchan enterprises is strong. The rising price of raw coal has led some enterprises to expand their losses and choose to stop production for maintenance. The price rising trend of Lanchan has become a trend. The cost side of magnesium ingots is still supported, and the price of magnesium will be difficult again.
Aftermarket forecast
On the whole, the operating pressure of the magnesium market is still there. There is production cost pressure at the top. The loss quotation of Lanchan enterprises rises. At the bottom, the market demand is depressed. Buyers purchase at a low price, and most of them just need to replenish the stock. In the short term, it is difficult to change the weak situation in the magnesium market. Considering that the cost line factories are unwilling to ship at a low price, it is expected that the magnesium market will still be weak.
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