Overview of trend of metal magnesium in March

In March, domestic magnesium ingot prices first fell and then stabilized, with signs of bottoming out and rebounding at the end of the month. The daily average price of magnesium ingots fluctuates between 20000 and 21500 yuan/ton, with an average price of 20745.98 yuan/ton during the cycle, and the fluctuation range of commodities is -4.21%. In the early months of this month, due to the continued weakness of downstream demand, magnesium prices continued to decline, even falling below 20000 yuan/ton, hitting a new low in nearly a year and a half. Magnesium plants have little profit or even loss, but they are not willing to continue to reduce prices and shipments. They have begun to stabilize their prices. The quotation has been firm at 20000 yuan/ton, and some manufacturers have chosen not to quote. At the end of the month, magnesium prices showed a trend of bottoming out, rebounding and rising. The cost side of the blue carbon industry limited production and guaranteed prices, and multiple manufacturers reduced production and stopped production, providing sufficient support to the magnesium market.

According to the price monitoring by the Business Agency, as of February 29, the spot exchange including tax in the magnesium ingot market was 20500 yuan/ton, down about 900 yuan/ton from the beginning of the month, a decrease of 4.21%, and a decrease of 49.59% compared to last year.

Supply and demand

The price of metal magnesium has been severely inverted, and the number of manufacturers that have cut production and stopped production has increased again, boosting confidence in the magnesium market. However, downstream procurement remains cautious, and overall demand for magnesium powder and magnesium alloy is cold. Moreover, the international economic situation is unstable, and overseas orders have decreased. According to statistics from the General Administration of Customs, China exported 65100 tons of various magnesium products from January to February 2023, a year-on-year decrease of 16.00%. Among them, 33600 tons of magnesium ingots were exported, a year-on-year decrease of 19.23%; Magnesium alloy exports totaled 19200 tons, a year-on-year decrease of 11.11%; A total of 10200 tons of magnesium powder were exported, a year-on-year increase of 17.07%.

Ferrosilicon fell 4.41% in March

On the 29th, the average market price in Ningxia was 7592.86 yuan/ton, and in March, the ferrosilicon market was operating in a weak state. However, with the introduction of limited production quotations by Lancan, and the increase in production cuts and furnace shutdowns by some ferrosilicon factories, the market’s low sentiment has improved somewhat.

In March, the price of blue carbon weakened first and then stabilized. Upstream ferrosilicon enterprises avoided peak production, while downstream demand was weak. Both supply and demand were weak, and the price of blue carbon was under pressure. However, on the 25th, Shenmu and other orchid industry associations and key enterprises proposed to limit production and maintain prices, and issued a minimum guidance price for orchid: 1350 yuan/ton for medium materials, 1300 yuan/ton for small materials, and 1000 yuan/ton for coke surface. Some enterprises in the market have adjusted the price of orchid, while the implementation of other enterprises remains to be observed. In the short term, the orchid market may operate steadily, forming a bottom support for magnesium ingots.

Aftermarket Forecast

Overall, the overall price of magnesium ingots in March was weak, with both supply and demand parties making tentative suggestions, and the overall wait-and-see atmosphere was strong. At present, the price of magnesium ingots has increased somewhat, and magnesium factories are actively pricing, but the acceptance of high-priced downstream sources is insufficient. It is expected that the short-term