Overview of the trend of magnesium metal in May
In May, domestic magnesium ingot prices increased first and then decreased. The daily average price of magnesium ingots fluctuates between 21500 and 28500 yuan/ton, with an average price of 25427.78 yuan/ton during the cycle, and the fluctuation of the commodity is 13.82%. At the beginning of the month, the magnesium ingot market experienced a rapid rebound in prices, stimulated by the news of the rectification of Fugu Lancan. As the supply side news continues to ferment, magnesium ingot manufacturers are selling at high prices, while some manufacturers are reluctant to sell and do not offer prices for the time being. With the gradual weakening of the impact of the Lancan news, buyers are gradually returning to rationality, and market transactions are showing a stalemate. Although magnesium factories have a willingness to stabilize prices, due to the weakening downstream demand, magnesium prices have been declining since the 12th.
According to the Commodity Market Analysis System of the Business Society, as of May 30th, the current exchange rate in the magnesium ingot market, including tax, was 23100 yuan/ton, an increase of about 200 yuan/ton compared to the beginning of the month, and a decrease of 25.48% compared to last year.
In terms of supply and demand
Under the influence of the policy of dismantling the furnace for orchid charcoal, some factories in the main production area have gradually ceased production, and most manufacturers have a strong willingness to sell at high prices. However, the market price was not supported, the downstream demand was depressed, the wait-and-see atmosphere in overseas markets was also strong, and the order was placed cautiously, which led to the continuous decline of magnesium price. Many magnesium factories are forced to proactively lower prices and close deals.
Ferrosilicon fell by 5.32% in May
On May 30th, the quotation for ferrosilicon in Ningxia was between 7000 to 7100 yuan/ton, with an average market price of 7067.14 yuan/ton. In May, the enthusiasm for downstream procurement of ferrosilicon decreased, and the pressure on ferrosilicon shipment increased, resulting in a significant overall inventory accumulation. At present, the confidence of manufacturers is insufficient, and the start of construction remains low, with some manufacturers mainly delivering orders from low inventory operations. As of May 25th, the operating rate (capacity utilization rate) was 32.67% nationwide, an increase of 0.76% compared to the previous period; The daily average production is 13271 tons, an increase of 70 tons compared to the previous period.
The overall price of orchid charcoal in May was in a downward trend. Some enterprises have gradually stopped production and boilers, and the supply of blue charcoal in the market may narrow. However, the overall inventory of blue charcoal factories is high, and there is no significant change in the supply and demand situation.
Future Market Forecast
Overall, the trend of the metal magnesium market in May was not good, mainly due to the impact of the Lancan rectification policy and market demand. Recently, the magnesium market has been mainly affected by weak downstream demand, with significant downward pressure on prices, making it difficult for magnesium prices to improve in the short term. But considering that many magnesium factories have already shut down and stopped production, it is expected that the factories will further reduce prices.