According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province has slightly declined, with an average market price of 16100 yuan/ton at the end of the month and 15800 yuan/ton at the beginning of the month, a monthly increase of 1.90%.
This month’s market analysis
At the beginning of March, magnesium prices fell to a low level in recent years. As multiple magnesium factories continued to face losses, in order to alleviate operational pressure, they chose to conduct equipment maintenance in advance and took measures to reduce or shut down production. Magnesium prices have rebounded and fluctuated near the cost line, with an upward trend as of the end of the month.
Supply and demand side
Given that the current price level still fails to provide magnesium factories with sufficient profit margins and safety buffers, companies that previously chose to shut down or reduce production due to market downturns generally have a relatively low willingness to resume production. Entering early April, it is expected that some companies will still enter the stage of shutdown and maintenance due to maintenance needs, which will undoubtedly further compress market supply. In this severe situation, coupled with the latest developments in environmental inspections, the magnesium factory is extremely determined to maintain the current price level and has a strong willingness to raise prices.
At present, downstream procurement is still maintaining essential procurement and there is no obvious hoarding phenomenon.
In terms of raw materials
In terms of raw materials, the prices of silicon iron and blue charcoal are basically stable and operating weakly, which has a certain supporting effect on magnesium prices. According to the Commodity Market Analysis System of Shengyi Society, on March 21st, ferrosilicon (brand: FeSi75～B; The market price for grain size grade/mm: natural block in Ningxia region ranges from 5650-5800 yuan/ton, with an average market price of 5772 yuan/ton, a decrease of 0.69%.
As of March 21st, the mainstream price of small and medium-sized raw materials in Shenmu market is 650-700 yuan/ton, and the price of coke surface is 450-530 yuan/ton; The mainstream prices for small and medium-sized materials in the Fugu market are 630-720 yuan/ton, and 440-600 yuan/ton for coke surface; The mainstream price of coke in the Zhongwei market is 480 yuan/ton; Shizuishan Market Mix 500 yuan/ton; The price of small and medium-sized materials in the Ordos market is 670 yuan/ton, and the price of coke surface is 500-590 yuan/ton; The price of small and medium-sized materials in Hohhot market is 650 yuan/ton, and the price of coke surface is 620 yuan/ton; The price of small and medium-sized materials in Hami market is 620-900 yuan/ton, coke surface is 330-1050 yuan/ton, and mixed materials are 210-300 yuan/ton; The price of small and medium-sized materials in Changji market is 850-1220 yuan/ton, and the price of coke surface is 550 yuan/ton, all of which are ex factory cash prices including tax; The prices of small and medium-sized materials such as blue charcoal in Tianjin Port are 950-980 yuan/ton, and coke face is 800-880 yuan/ton, both of which are cash inclusive of taxes at the port closing price; The price of Yumen small materials is 280-500 yuan/ton, the price of coke surface is 350-620 yuan/ton, the mainstream price of coke powder is 560 yuan/ton, and the price of rice materials is 395-430 yuan/ton, all of which are cash inclusive of tax at the factory price.
Future forecast
As of the end of this month, magnesium prices have bottomed out and rebounded, showing a strong trend. However, in the long run, there is currently no significant improvement in demand, and it is expected to fluctuate within the range. We will pay attention to environmental inspections and the resumption of work and production in magnesium plants in the future.
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