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SunSirs: Insufficient Demand, China's Magnesium Ingots Run Weakly in Mid-to-Early August

August 20 2020 08:09:29     SunSirs (Linda)

2020 magnesium market trend

On August 19, 2020, domestic magnesium ingots (99.9%, no pickling, simple packaging) ex-factory cash tax-included prices were operating weakly and steadily on August 19, 2020. The overall range was 1,2800-13,000 yuan/ton, and actual order negotiations were the main focus.

The specific price range of each region is as follows

Fugu area ex-factory exchange tax is 12,750-13,000 yuan/ton; Taiyuan area is 12,850-12,950 yuan/ton; Wenxi area is 13,000 yuan/ton; Ningxia area is 12,800-12,900 yuan/ton.

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

According to data from SunSirs, the average domestic market price was RMB 12,900/ton on the 19th, which was a decrease of 0.26% from the average price of RMB 12,933.33/ton in the early July (8.1) market; and RMB 14,166.67/ton, which was a decrease from the average price of RMB 14,166.67/ton at the beginning of the year (1.1). 8.94%. Magnesium ingot prices have been weak and stable recently, and the quotations of mainstream production areas have not changed much.

Insufficient demand Magnesium ingots run weakly in mid to early August
At present, the external quotations of magnesium ingots are basically stable. Affected by cost factors, the willingness of mainstream manufacturers to lower their quotations has declined. However, due to the obstruction of the export end, the domestic downstream customers just need to purchase, the intermediary purchases sporadically, and the willingness to lower prices is strong, the actual transaction price in the market is slightly loose.

The weak operation of magnesium ingots in mid-to-early August was mainly due to poor demand. It is reported that there is not much market trading at present, and domestic downstream manufacturers have relatively sufficient stocks in the early stage. At present, they basically purchase on demand and are not willing to stock up in large quantities. Magnesium ingot manufacturers are based on cost factors. Considering that there is not much room for price reduction at present, the market supply and demand game has intensified.

Market outlook is expected

Some factories may suspend production for maintenance. The supply side has certain benefits for magnesium prices, but due to the reality of weak demand, it is difficult for the demand side to significantly improve in the short term; supply pressure still exists in the short term. It is expected that the weak and stable operation in the later period may become normal. In the later period, attention will be paid to the changes in the rhythm of downstream procurement.

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