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SunSirs: The Cost of Magnesium Ingots Faces the Demand Side and the Prices are Stable and Normal

July 31 2020 08:24:33     SunSirs (Linda)

Magnesium market trend

On July 30, 2020, the ex-factory cash tax-included price of magnesium ingots (99.9%, no pickling, simple packaging) in the main producing areas in China will run smoothly, and the overall range will be 12,800-13,100 yuan/ton. Real-order negotiations are the main focus.

The specific price range of each region is as follows

Fugu area ex-factory tax-included cash exchange is 1,2800-13,000 yuan/ton; Taiyuan area cash exchange is 12,900-13,000 yuan/ton; Wenxi area cash exchange is 13,000-13100 yuan/ton; Ningxia area cash exchange is 12,800-12950 yuan/ton.

Magnesium ingots are national standard (GB/T3499-2011) primary magnesium ingots; non-pickling, no wooden pallets, and non-payment of acceptance price, based on actual order negotiation.

According to data from SunSirs, the average domestic market price on the 30th was RMB 12,933.33/ton, a decrease of 3.72% from the average price of RMB 13,433.33/ton in the early July (7.1) market; and RMB 14,166.67/ton from the average price of the market at the beginning of July (1.1), a decrease of 8.71%. The price of magnesium ingots has been stable recently, and the quotations of mainstream producing areas have remained basically unchanged.

In 2020, the price of magnesium ingots has been declining. Since mid-April, the price fluctuation has stabilized, and the price range is between 12,800-13,400 yuan/ton.

Magnesium ingot prices rebounded weakly, and the overall weak operation was mainly due to the drag of overseas demand.

According to the statistics of the General Administration of Customs, the export volume of my country's six types of magnesium products with tax codes from January to June 2020 totaled 208 thousand tons, a year-on-year decrease of 10.50%, and the cumulative export value was US$492 million, a year-on-year decrease of 18.86%;

Among them, the export volume of magnesium ingots was 114,400 tons, a year-on-year decrease of 8.41%.

The cost of magnesium ingots faces the barrier demand and the price is stable and normal

At present, the price of magnesium ingots is relatively low, and the mainstream transaction price in the market has approached 12,850 yuan/ton. Affected by cost factors, mainstream manufacturers’ willingness to hold up prices has risen; due to the obstruction of the export side, domestic customers just need to purchase and intermediaries purchase sporadic purchases, fast in and out Mainly, it is difficult for the demand side to significantly improve in the short term; supply pressure still exists in the short term.

Magnesium ingot prices fell behind in July and have recently stabilized. It is reported that there is not much market trading at present, and domestic downstream manufacturers have relatively sufficient stocks in the early stage. Currently, they are basically purchasing on demand and are not willing to stock up in large quantities. Magnesium ingot manufacturers are affected by cost factors. At present, the willingness to reduce prices and promote sales has weakened, and the willingness to suspend production and repair is relatively rising, and the market supply and demand game tends to stabilize. It is expected that some factories may stop production for maintenance in the later period, and the supply side will have certain benefits for the magnesium price. However, based on the reality of weak demand, it is expected that the later period will run smoothly or become the norm, and later attention will be paid to the changes in the rhythm of downstream procurement.

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