Last week, supported by the continuous tight spot supply from factories, the overall operation of the magnesium market was strong. As of June 22, 99.9% of magnesium ingots in the Fugu region of Shaanxi reported mainstream ex factory tax cash prices of 15600 to 15700 yuan/ton, with mainstream transaction prices of 15600 yuan/ton, and even lower price sources; 15700 to 15800 yuan/ton in Ningxia and Taiyuan regions; The price in Wenxi area ranges from 15900 to 16000 yuan/ton, which is stable compared to the previous week. The acceptance price is increased by 300 yuan/ton, all of which are non pickling and simple packaging prices. The FOB export price ranges from $2500 to $2530 per ton. Fused magnesia
It is understood that the trading situation in the magnesium market last week was normal, and currently there are still very few factory stocks. Market participants are mostly continuing to stabilize the market this week.
On June 22nd, the author learned from a sales general manager of a magnesium factory in the Fugu region that they reported a cash price of 15600 yuan/ton, including tax, for the factory of Pu Magnesium, and the transaction was acceptable.
A magnesium industry insider from the northern region stated that the transaction situation in the magnesium market last week was normal. As long as there was a supply of 15500 yuan/ton of ex factory taxed cash in the Fugu region, it would soon be affected. Currently, there are very few factory stocks, and the insider sees the magnesium market as stable this week.
A general manager of a magnesium powder factory also stated that the factory has very few in stock, and currently procurement generally requires waiting for 3-5 days to pick up the goods. The person also believes that the current magnesium market is not significantly affected by the ferrosilicon market. Although the ferrosilicon market is stable and weak, the probability of a decline in the magnesium market is very low. However, due to the impact, some downstream users of magnesium have also reduced their consumption of magnesium, and the upward momentum of the magnesium market is also insufficient due to low orders.
Analysis suggests that from the perspective of supply and demand, the current situation in factories is generally tight, and with the arrival of the summer solstice on June 21st, it means that the "mode" has been activated throughout the year, with workers working hard and factory production limited. It is expected that magnesium factory quotations will remain firm and upward, making it difficult for magnesium prices to decline. Considering that it is difficult for downstream users to accept high prices, and that downstream enterprises will also conduct equipment maintenance in the summer, it is not easy for magnesium prices to rise due to weak demand. This week, the magnesium market will be more stable.
