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SunSirs: Supply Exceeds Demand, China's Magnesium Ingot Prices are Weak

September 23 2020 08:01:40     SunSirs (Linda)

Magnesium market trend in 2020

On September 22, 2020, domestic magnesium ingots (99.9%, no pickling, simple packaging) ex-factory cash including tax prices were weak and stable, and the overall range was 12,100-12,500 yuan/ton, and actual order negotiations were the main focus.

The specific price range of each region is as follows

Fugu area ex-factory tax-included cash exchange is RMB 12,100-12,200/ton; Taiyuan area cash exchange is RMB 12,200-12,300/ton; Wenxi area cash exchange is RMB 12,300-12,400/ton; Ningxia area cash exchange is RMB 12,150-12,200/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 on the 22nd was RMB 12,333.33/ton, a decrease of 2.89% from the average price of RMB 12,700/ton at the beginning of September (9.1); the average price of RMB 14,166.67/ton from the beginning of September (1.1) was a decrease of RMB 12.94%. Recently, the price of magnesium ingot has been weak and stable, and the price has dropped slightly.

Light trading, low shipment

At present, there is not much trading in the market, and the downstream demand is mainly purchased, and the export end is not good. The domestic market supply and demand are weakly supported by magnesium prices.
Downstream customers are cautious in placing orders recently and mainly purchase on dips. On the one hand, the market for magnesium ingots is soft and bearish sentiment is rising. The demand for inventory is expected to buy. The price is low and sideways, downstream customers mostly wait and see the market, and just need to purchase mainly.

Near the end of the month, some magnesium ingot manufacturers have increased their demand for funds to withdraw. This week, some manufacturers lowered their quotations to promote volume with price and reduce inventory pressure. The low-priced supply in the market increased. It is reported that some manufacturers ship at a price of RMB 12,100-12,400/ton.

Market outlook is expected

The market expectations of weak trading and accumulation of inventories are difficult to reverse in the short term. Based on the current low magnesium ingot prices, magnesium companies have limited room for downward adjustments. It is expected that they will continue to be weak and stable in the near future.

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