Price trend of metallic magnesium

Market analysis this week

According to the monitoring data of the business agency, as of the 24th, the average price in the domestic market was 26166.67 yuan / ton, down 2.48% on a weekly basis. This week, the magnesium ingot Market was relatively stable, the market was in a weak consolidation operation, and the supply and demand sides maintained a stalemate.

Supply and demand

There is no significant change in the fundamentals of supply and demand in the magnesium market for the time being, and the market price has reached the low point of the year. Considering the factory cost and the high temperature rise, the difficulty of work has increased. Individual factories have started the maintenance plan, and the willingness of magnesium factories to stabilize the market is relatively strong. Some factories that observe the market temporarily do not offer prices, and have a strong mentality of selling at low prices. On the demand side, although the current price is low, only some downstream customers just need replenishment in time, and the performance of inquiry and transaction is flat.

Upstream and downstream

The ferrosilicon market continued its weak operation. On June 24, the mainstream quotation in Ningxia fluctuated in the range of 8200-8500 yuan / ton. The market’s expectation of ferrosilicon demand was poor. In addition, the futures were low, and the transaction price of ferrosilicon kept falling. However, the market quotation has reached the cost line, and the room for decline is relatively limited.

The downstream magnesium alloy and magnesium powder are relatively stable, the market demand for magnesium alloy has warmed up, and the production and procurement enthusiasm of die casting plants has rebounded; Magnesium powder transaction is still weak. The overall downstream demand increment is small.

Aftermarket forecast

On the whole, the contradiction between supply and demand in the magnesium market is still in existence. Considering the cost pressure and weather reasons, the magnesium plant has a strong willingness to maintain stability, and the subsequent decline of the market is limited. However, the market lacks positive support, and the transaction rhythm is slow, so the price of magnesium ingots is difficult to rise and fall. It is expected that the market price will be stagnant in the short term, so it is necessary to pay attention to the follow-up of subsequent demand.