SunSirs: Continue to Run Smoothly for Half a Month, Chinese Magnesium Ingot may have Entered the Bottom Shock Period

Magnesium market trends

On June 15, 2020, the price of ex-factory cash inclusive of magnesium ingots (99.9%, no pickling, simple packaging) in all major production areas in China was basically stable. The current mainstream quotation range was 13,050-13,400 yuan/ton, and the actual single order is mainly negotiated.

According to SunSirs follow-up information, the tax-exempt cash in the Fugu area was 13,050-13,200 yuan/ton; the Taiyuan area was 13,150-13,250 yuan/ton; the Wenxi area was 13,200-13,400 yuan/ton; the Ningxia area was 13,050-13,200 yuan/ton.

According to SunSirs data, the average domestic market price on the 15th was 13,183 yuan/ton, compared with the average market price of 13,216.67 yuan/ton in early June (6.1), a decrease of 0.25%.

Running smoothly for half a month

Since mid-April, magnesium prices have fallen to the lowest level in three years, and some manufacturers have increased their willingness to stop production and maintenance. On the one hand, the export market has weak trading, prices are running low, and manufacturers have greater pressure on operating costs; on the other hand, domestic market supply and demand are relatively stable Affected by cost factors, manufacturers have strong willingness to push prices, and the market game tends to be stable.

Since June, the market of magnesium ingots has been running smoothly, failing to get out of the ‘V’ shaped upward trend of the non-ferrous sector since April, mainly based on two factors:

1. The price trend of magnesium ingots has been relatively good in recent years, running relatively high;

2. The proportion of magnesium ingot exports is relatively large, and the external environment has a relatively large influence factor on the price of magnesium ingots.

Market outlook

Downstream demand is weak, the price of magnesium ingots is currently low, and the weather is gradually turning hot. It is expected that some factories will be shut down for maintenance in the later period. The supply side will have a certain positive effect on the price of magnesium. Pay attention to the changes in the purchasing rhythm of the downstream market.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.