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SunSirs: China's Magnesium Price Rebounded in the First Wave after the Autumn

September 27 2020 08:30:49     SunSirs (Linda)

1. Market trend of magnesium market in 2020

On September 25, 2020, the ex-factory cash-included tax price of magnesium ingots (99.9%, no pickling, simple packaging) in the main domestic producing areas stabilized, and the overall range was 12,300-12,550 yuan/ton, and actual order negotiations were the main focus.

2. The specific price range of each region is as follows

Fugu area ex-factory tax-included cash exchange is 12,300-12,400 yuan/ton; Taiyuan area cash exchange is 12,400-12,450 yuan/ton; Wenxi area cash exchange is 12,400-12,550 yuan/ton; Ningxia area cash exchange is 12,350-12,400 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 25th was 12,350 yuan/ton, a decrease of 2.76% from the average price of 12,700 yuan/ton in the early September (9.1) market; and a decrease of 2.76% from the average market price of 14166.67 yuan/ton at the beginning of September (1.1). 12.82%. After the fall, the price of magnesium ingots began to stabilize and rebounded slightly.

3. Magnesium prices are low

According to statistics from the China Nonferrous Metals Industry Association, China produced 465,400 tons of primary magnesium from January to July 2020, a year-on-year decrease of 3.66%.

Among them, the cumulative production in Shaanxi was 306,500 tons, a year-on-year increase of 6.85%;

Shanxi produced a total of 62,700 tons, down 16.91% year-on-year;

The cumulative production in Ningxia is 27,700 tons, an increase of 6.52% year-on-year;

The cumulative production in Xinjiang was 22,100 tons, a year-on-year decrease of 36.09%;

The cumulative production in Liaoning was 21,000 tons, a year-on-year decrease of 14.69%;

The cumulative production in Henan was 14,300 tons, down 6.31% year-on-year;

The cumulative production in Inner Mongolia was 10,100 tons, a year-on-year decrease of 11.77%;

The Shandong area has produced a total of 6,000 tons, an increase of 16.40% year-on-year;

The Hebei region produced a total of 0.021 million tons, a year-on-year increase of 67.19%.

4. The impact factors on the supply and demand side move downward, and the impact factors on the cost side rise.

In the early stage, the market price of magnesium ingots fell to RMB 12,100/ton, and the profit margin of magnesium enterprises fell. Based on the consideration of cost factors, domestic mainstream manufacturers have sharply increased their willingness to stand up prices, and the influence of cost factors on prices has gradually increased. Unlike when profitable, the supply and demand side is weaker, and buyers will benefit in the long-short game. The influence of supply and demand factors on prices weakened.

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