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SunSirs: Demand is not Good, Chinese Magnesium Ingot Prices Remain Weak and Stable

July 15 2020 08:32:09     SunSirs (Linda)

Magnesium market trends 

On July 14, 2020, the price of ex-factory cash inclusive of magnesium ingots (99.9%, no pickling, simple packaging) in all major production areas in China fell slightly. Recently, the transaction in the magnesium market has been weak, and the manufacturers' willingness to sell prices has moved down. The current mainstream offer range At 12,800-13,100 yuan / ton, real orders are mainly negotiated

According to SunSirs data, the average domestic market price on the 14th was 13,066.67 yuan/ton, compared with the average price of 13,433.33 yuan/ton in the market at the beginning of July (July.1), a decrease of 2.73; the average price of the market was 14,166.67 from the beginning of the year (January.1), a decrease of 7.76%.

The specific price range of each region is as follows:

The ex-factory tax-included cash in Fugu area is 12,800-13,000 yuan/ton; the Taiyuan area is 12,950-13,100 yuan/ton; the Wenxi area is 13,050-13,200 yuan/ton; the Ningxia area is 12,850-13,000 yuan/ton.

Demand is not good

At the end of June, some manufacturers in mainstream production areas were affected by cost factors, and they tried to raise prices tentatively. The market quotation increased slightly. Later, due to the limited actual transactions, the small factories have a stronger willingness to ship, more low-priced supplies, and greater pressure from manufacturers. Since July, the market price of magnesium ingots has continued to fall, falling below the 13,000 mark.

On the supply and demand side, affected by export inefficiencies, the current spot supply is relatively sufficient, and downstream procurement is relatively rational. Under weak market expectations, more on-demand procurement is the mainstay, and the willingness to hoard goods is low.

The outlook remains weak and stable

In terms of exports, overseas demand is expected to be difficult to improve in the near future. It is reported that in May China exported a total of 16,128.22 tons of unwrought magnesium (Mg ≥ 99.8%), with an amount of US$35,355,500; compared with April, the export volume fell by 26.33%. The amount fell by 28.4%.

It is expected that the magnesium price in the future market will remain weak and stable, and the focus will be on the latter period.

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