SunSirs: Bottomed out and China's Magnesium Prices Stabilized and Rose 2020 Magnesium Market Trend

In 2020, the price of magnesium ingots will generally show a downward trend, reaching a historical low in recent years. According to data from the business agency, magnesium ingot prices began to stabilize in mid-September. This week, magnesium ingot prices bottomed out and rose slightly.

On October 16, 2020, the ex-factory cash tax-included price quotations of magnesium ingots (99.9%, no pickling, simple packaging) in major domestic producing areas rose slightly, and the current mainstream quotation range is between 12400-12700 yuan/ton, and real-order negotiations are mainly . It is reported that the current actual transaction price in the mainstream production area market is in the range of 12,350-12650 yuan/ton, and the price has risen slightly.

The specific price range of each region is as follows:

Fugu area ex-factory exchange tax is 12,350-12,500 yuan/ton; Taiyuan area exchange is 12,500-12,600 yuan/ton; Wenxi area is 12,600-12,700 yuan/ton; Ningxia area is 12,450-12,500 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.

Main reason for magnesium price recovery

1. The price drops to a low

On October 15, the magnesium commodity index was 75.61, the same as yesterday, a 33.92% decrease from the highest point in the cycle of 114.43 points (2012-08-01), and a 4.03% increase from the lowest point of 72.68 points on January 10, 2016. (Note: Period refers to 2012-03-01 to present)
At present, the price is near the historical low, and the downside space is narrowed.

2. Improved trading and rising willingness to hold prices

The early market was weak, which affected the enthusiasm of magnesium companies to start construction to a certain extent. It is reported that China produced 465,400 tons of primary magnesium in January-July 2020, down 3.66% year-on-year.

After the holiday, the downstream purchase inquiries increased significantly compared with the previous period, and the actual transactions also improved. The willingness of magnesium companies to support prices rose, and the quotations moved upward this week.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.