Magnesium Prices Have Reached The Cost Line

After the holiday back to the market, the magnesium market continues to run weak consolidation. Today’s understanding, 99.9% magnesium ingot factory offer factory taxed cash price 26000-26500 yuan/ton, also have factory reluctance to low price shipments, offer slightly higher. About 1000 yuan/ton lower than before the Dragon Boat Festival, other areas to follow the adjustment.

Recently, the market by the demand side continues to be sluggish, the market continues to pressure down, and the downstream continues to just need to purchase mainly, wait and see mostly. The current price of magnesium ingot has been close to the factory production cost line, but also since last September, the lowest price in the market. From may 6 to June 6, just one month fell by more than 10,000, magnesium ingot prices from 37,000 yuan/ton all the way down to 26,000 yuan/ton, still can not see signs of improvement. On the one hand, the price is falling, on the other hand, is slowly accumulating inventory, and the market price return of the road is more difficult.

Recently, a magnesium plant manager said that the current market sentiment is mostly weak, that magnesium prices will drop again space will not be much, the summer heat is coming, if magnesium prices continue to go low, the plant will open maintenance work. Another understanding from a trader, demand is not much-dragging magnesium market continues to weaken, and that with the return of magnesium prices to a reasonable range, the domestic epidemic improved, the resumption of work and production on the right track, and the domestic alloy market demand is expected to gradually improve.

Comprehensive analysis that, although the current magnesium price has been at a low level, and from the coast line is also gradually approaching, but taking into account the current demand side has not yet significantly improved, the supply is still the more abundant situation, magnesium price stabilization still has a lot of pressure, is expected to market this week is still weak consolidation operation, later must also wait and see how the demand follow-up.

Above news just for reference.