The good news boosted the magnesium plant’s offer to increase (11.8-11.12)

Trend of metallic magnesium (11.8-11.12, the same below)

Market analysis this week


This week, the magnesium market showed a stable medium strong pattern. In the early part of the week, the magnesium ingot Market was dominated by a stable trend, the market sentiment was relatively stable, the cost side support was insufficient, and the upward momentum was lack; In the later part of the week, the market turnover improved slightly, the number of downstream orders increased, and the shipment of traders was also more positive.

As of November 12, the specific price range of each region is as follows: ex factory tax cash exchange in fugu area is 32700-32800 yuan / ton; The ex factory tax included spot exchange in Ningxia is 32700-32800 yuan / ton; The ex factory tax included spot exchange in Taiyuan is 32800-32900 yuan / ton; The ex factory tax included spot exchange in Wenxi area is 32900-33000 yuan / ton.

Market analysis this week

Raw material side: according to the data monitoring of the business society, the average market price of thermal coal is about 1086.25 yuan / ton, the price has decreased by 0.57%, the production capacity of the origin has been released, and the tight supply situation has been alleviated; The average price of ferrosilicon market is about 9200 yuan / ton. Influenced by the landmark steel bidding and the decline of futures in November, the market is dominated by weak operation.

Supply side: at present, there are few magnesium plants in stock, the procurement volume of downstream manufacturers is still increasing, and magnesium traders also increase magnesium prices. In addition, Yulin region is supported by local collection and storage policies, and the relationship between supply and demand is strong, forming strong support for magnesium prices.

Policy side: Yulin, Shaanxi Province has issued new regulations on dual control of energy consumption and implemented measures to limit and stop production for some key high energy consuming industries, which may have a certain impact on the release of magnesium production capacity in the later stage.

Future forecast

On the whole, although the prices of ferrosilicon and coal have continued to fall, which has a negative impact on the magnesium market, the transactions dominated by downstream just need procurement have performed well. On the one hand, there are few spot resources for the supply side magnesium plants, on the other hand, the news of collection and storage in Yulin has boosted a series of good news. The price of magnesium ingots is expected to turn from weak to strong in the short term, but the overall increase is limited.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>