Magnesium price stops falling, stabilizes and returns to low level

As of June 7, the price of magnesium has stopped falling and stabilized, with a low rise of nearly 1000 yuan per ton. The specific price range of each region is as follows:

In fugu area, the ex factory cash including tax is 19000-19100 yuan / ton; In Ningxia, 19000-19100 yuan / ton of ex factory cash including tax; In Taiyuan, the ex factory cash including tax is 19100-19200 yuan / ton; In Wenxi area, the ex factory cash including tax is 19200-19300 yuan / ton.

Strong raw material price and strong cost support

In terms of ferrosilicon, it is reported that on June 3, 2021, the leading group of energy conservation and emission reduction in Zhongwei city issued a notice on the implementation of production restriction for some high energy consuming enterprises. The production restriction period is from June 3 to December 31, so as to limit the overall production of ferrosilicon in Ningxia; In terms of coal, some coal mines in Yulin chose to stop online bidding. Affected by the policy, the price remained stable, and the price of magnesium ingot returned to 19000 yuan / ton due to the rise of upstream market.

Low social inventory, tight supply and demand

In terms of inventory, some magnesium plants had maintenance in May, and in the short term, the inventory was low. However, due to the excessive price rise of magnesium ingots, some downstream users are not in a hurry to purchase and take a wait-and-see attitude.

Future forecast

Forecast: due to the influence of “buying up but not buying down” of customers, the sharp rise of magnesium price last week leads to the saturation of magnesium market demand in advance this week, and it is expected that magnesium price will decline and callback in the short term.