In May, the price of magnesium ingot per ton soared by 4000-5000 yuan / ton, reaching a new high in nearly nine years

The market price of magnesium ingot rose again on the 14th

On May 14th, 2021, the total range of price range of ex factory cash tax of magnesium ingots (99.9%, acid free and simple packaging) in main production areas of China was 21500-22000 yuan / ton, which was mainly discussed by actual single parties.

The specific price ranges of each region are as follows:

The ex factory tax cash exchange in fugu area is 21500-22000 yuan / ton; RMB 22000-22100 / ton of cash exchange in Taiyuan area; 22100-22200 yuan / ton of cash exchange in Wenxi area; Ningxia area cash exchange 21900-22000 yuan / ton.

Magnesium ingot is the primary magnesium ingot of national standard (gb/t3499-2011); Non pickling, no wooden tray and non payment acceptance price, mainly for single negotiation.

After the festival, the price of ton rose by RMB 4000-5000 / ton

According to the data of business agency, the market quotation of main production area rose to 17400-17600 yuan / ton at the end of April. After the festival, the market quotation was high, low price goods sources were difficult to find, and the saving price increased, and the price of ton rose by 4000-5000 yuan / ton.

It is reported that the downstream end-users began to find low-cost goods on August, and the pre-season quotation inquiry was difficult. The market quotation reached 19000 yuan / ton on Monday, and it was continuously attacked in the next few days, reaching a historical market high of 20000.

This surge has been rising, catering to the trend of the soaring futures commodity market. The circle of friends spreads the paragraph “don’t bet tomorrow’s price, buy goods without skill, all buy early”, can also see that after the recent surge, market speculators see a high sentiment.

At present, the market has good trading and investment, and the manufacturers have strong willingness to settle prices. In the early stage, the stock traders have profit demand for shipment, and there is a certain bargaining space under the promotion of excessive profits.

The recent strong surge in magnesium ingot prices is mainly based on two factors:

Strong cost side support & expected improvement of supply and demand side

Strong cost side support

Cost side, in recent 1-2 years, the price of raw silicon iron is relatively strong, and the price of magnesium ingot has been relatively soft in the early stage. The cost factor has been increasing gradually.

The raw silicon iron market is affected by Ningxia energy dual control policy, and the low price source of goods has decreased sharply. In addition, the continuous operation of recent increase of the price of orchid products by the upstream raw material enterprises of ferrosilicon is added. The company has issued the notice on the price adjustment of Lancang products of the subordinate enterprises of Lancang group. The market has strengthened the expectation that the trend of ferrosilicon will be high and stable in the short term. The expected strengthening of the cost side support of magnesium ingots is expected.

In the main production area of magnesium ingot, most of the metal magnesium in Shaanxi is the recycling industry of Lancan ferrosilicon metal magnesium. The production of raw magnesium and coke powder (Lancan and clean carbon) is greatly affected by the price of raw coal, and the high production cost has greatly increased the pressure on production and operation.

Expected improvement of supply and demand

At present, domestic market demand is relatively improved, and the purchase is not up or down, the inquiry volume increases, the market is not much spot, and the spot supply is relatively tight.

On the one hand, the main production area manufacturers have not much stock, which is affected by the raw material price factors, and the initial start rate is not high and the production is relatively insufficient. At present, the spot of the factory is generally less, and some manufacturers start the pre-sale delivery mode. On the other hand, raw materials soared, and the factory price of magnesium ingots rose. The market of magnesium ingots is singing all the way, which helps some speculators to hoard goods. Some downstream small-scale customers, seeking low-cost sources, mainly to the early hoarding trade speculators, profit settlement and shipment.

Domestic demand is expected to be strengthened and import and export are also positive. According to exporters, export orders began to warm up and order volumes increased. The production abroad has gradually recovered, and the demand for magnesium ingots has risen.

Magnesium prices have hit a high of nearly nine years after the storm

According to the data of business agency, the magnesium commodity index on May 15 was 127.03, which was flat with yesterday, a record high in the cycle, up 74.78% from the lowest point of 72.68 on January 10, 2016( Note: the cycle refers to March 1, 2012 to present)

We should be careful to stock up goods on speculation

At present, the coal price is relatively high, the cost pressure is relatively high, and the enterprise has not much inventory at present, and the pre-sale transaction accounts for a large proportion. The willingness of the manufacturer to settle the price is relatively sufficient. The downstream end users should have a proper amount of the primary storage to ensure the dynamic balance of magnesium used by the enterprise. If the stock speculation is the starting point, the current price is high and the risk is large, which tests the fast delivery capacity of the speculators.

The price of magnesium ingots has been constantly high, and the short-term surge is rapid. On the one hand, it is more testing the pressure bearing capacity of downstream, and it is expected that there may be a process of digestion and increase in downstream market. On the other hand, the price difference between magnesium and aluminum is back to the era when the price of magnesium is higher than that of aluminum, and the price ratio of magnesium is relatively weak.