Market analysis this week

According to the data monitoring of the business community, as of the 21st, the average price in the domestic market was 25133.33 yuan/ton. This week, the domestic magnesium metal market showed a trend of first restraining and then rising. The first half of the week was affected by weak demand, with a decline of 100-300 yuan/ton; The price rose strongly in the late week, boosted by the news that the production of charcoal was greatly reduced.

Raw materials

Influenced by the news of “Fugu Orchid Carbon Furnace Transformation Plan” on the afternoon of the 19th, the production equipment required by environmental protection will be shut down on the 25th of this month, and nearly half of the capacity will be removed. The magnesium price is up as a whole, with an increase of 500-600 yuan/ton. The market quotation is relatively chaotic, but the news has not been confirmed, and the impact on the subsequent magnesium ingot production is unknown.

The average market price of ferrosilicon in Ningxia is 8071 yuan/ton. With the high raw material price and transportation cost, the price of ferrosilicon remains relatively high, while the coal market remains high due to the active supply and demand

Downstream

From the perspective of supply and demand, the prices of magnesium powder and magnesium alloy in the downstream have first decreased and then increased along with that of magnesium ingots. The overall demand has not changed much, the market transaction is relatively cold, and the enterprise production starts have not changed much.

Future market forecast

In general, the raw material silicon coal has provided some support for the magnesium market, but the overall weak demand still restricts the driving force of the magnesium price rise. Under the fermentation of the news of Orchid Charcoal, the short-term magnesium price mostly maintains a firm operation, but we still need to pay attention to the sustainability of the Orchid Charcoal rectification on the magnesium price recovery.