Magnesium metal trend in August
| povidone Iodine |
In August, the daily average price of domestic magnesium ingots fluctuated between 22000-26000 yuan / ton, and the average price in the cycle was 23557.47 yuan / ton. The rise and fall of commodities were 11.92%. This month, the magnesium market experienced strong shocks, and the overall price moved upward. At the beginning of the month, the magnesium price showed a weak consolidation, the demand follow-up was insufficient, the superimposed cost support was weak, the market maintained a cautious attitude, and magnesium factories also took measures to reduce and limit production one after another, but the total supply was still on the high side; In mid August, the magnesium market ushered in the first round of price increase in August, with a continuous increase of about 2000 yuan / ton for four days. Export orders on the demand side were released in a concentrated manner, some domestic middlemen speculated and hoarded goods, and magnesium factories took advantage of the trend to raise prices; Near the end of the month, the magnesium market ushered in the second round of price increase, which rapidly rose to the transaction price of 26000 yuan / ton. The main factor of this round of sharp increase is the impact of the epidemic in Shenmu area, which has made the already high coal price worse. People in the industry are pessimistic about coal supply expectations.
According to the price monitoring of the business association, as of August 29, the tax included spot exchange in the magnesium ingot Market was 25666.67 yuan / ton, an increase of about 2500-3000 yuan / ton over the beginning of the month, a decrease of 11.92%, which was the same as that of the same period last year.
Market analysis
Export
According to customs statistics, China’s magnesium ingot export in July was 24936 tons, a month on month decrease of 1.4%, a year-on-year increase of 12%, and a cumulative year-on-year increase of 10.6%. Compared with June, the export volume decreased slightly, and the monthly export volume and cumulative export volume were still at a high level.
Output:
| Azodicarbonamide (AC foaming Agent) |
In July, China’s magnesium ingot output was 69286 tons, a month on month decrease of 14.74%, a year-on-year increase of 18.73%, an operating rate of 59.47%, a month on month decrease of 14.74%, and a year-on-year increase of 1.41%. From June to August, the magnesium plant was overhauled at high temperature in summer. Due to the weak market demand, the contradiction of overproduction in the main production area was prominent, and some magnesium enterprises had a serious shortage of funds, so they had to take the initiative to stop production for overhaul.
Raw materials
Coke fell by 18.18% in August
In terms of coke, the coke market experienced two rounds of increases in August, with an increase of 400-480 yuan / ton in the month. The increase in production costs boosted the rise in magnesium prices. Recently, an epidemic broke out in Shenmu area. At present, some coal mines and traffic have been affected to a certain extent. It is not ruled out that the coal supply will be more tight in the future, which will further lead to the shutdown of the magnesium plant.
Future forecast
In general, the expected shortage of raw materials in the short term supports the rise of magnesium prices and production costs. Factories are not willing to reduce their quotations too quickly. However, considering that demand has not recovered at present and there are few export orders, it is expected that magnesium prices will be consolidated in September. Follow up attention will be paid to the impact of the epidemic on raw material transportation and downstream transactions.
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