When the price goes up, it's magnesium's turn. Recently, the price of magnesium has risen sharply, reaching an all-time high. As of August 27, it is rare that the spot price of magnesium ingots in Fugu area of Shaanxi Province rose to 26500 yuan / ton, up nearly 4000 yuan / ton compared with the previous week.
Magnesium prices also "skyrocketed" for a period of time in 2016, but when it comes to the reasons for this price rise, the magnesium Branch of the China Nonferrous Metals Industry Association said that the magnesium price rise was not caused by man-made factors. it is mainly affected by the sharp rise in the price of raw materials such as coal and ferrosilicon. "on the one hand, the rising prices of raw materials such as coal and ferrosilicon have increased the production costs of original magnesium enterprises. On the other hand, due to industrial policy and environmental protection reasons, some magnesium production enterprises shut down their production capacity, while downstream demand still maintained normal growth, resulting in an imbalance between supply and demand. This makes the already high price of magnesium continue to rise. "
To this end, on August 27, the magnesium Branch of China Nonferrous Metals Industry Association issued an initiative to jointly promote the healthy development of the magnesium industry to ensure the long-term development of the magnesium industry.
For the processing industry, the sharp rise in magnesium prices has affected the enthusiasm of downstream applications to a certain extent. The magnesium Branch of China Nonferrous Metals Industry Association points out that in recent years, the application of magnesium alloy has achieved good results and has been applied in batch in many fields. At present, it is the key period for the popularization and application of magnesium, and the sharp rise in price is extremely disadvantageous to the promotion and application.
Shaanxi Province is a major province of magnesium production in China. Various magnesium enterprises in Fugu County, which have unique regional and resource advantages, have been greatly affected by this price rise. Chen Genyong, chairman of Tianyu magnesium Group and chairman of Fugu County magnesium Industry Association, introduced the basic situation of magnesium production enterprises in Fugu County to reporters. He said that in the face of the "skyrocketing" prices of coal and ferrosilicon, the costs of magnesium producers are also rising sharply. He said that the price changes of raw coal and ferrosilicon are very transparent, although the price of magnesium is higher, but the pressure of magnesium factories is also greater. He admitted that for magnesium plants, the high price of coal is fatal.
In the face of the sharp rise in magnesium prices, Chen Genyong said helplessly that some magnesium plants had completely stopped production and overhaul because they could not buy coal. When the reporter asked the magnesium factory how to deal with it, he said that at present, the magnesium factory can only reduce production, which coincides with upgrading and rectification at the same time.
What will be the future trend of magnesium ingot prices? The magnesium branch of the China Nonferrous Metals Industry Association said that recently, the price of coal rose from 600yuan / ton to 1100 yuan / ton, a sharp increase of 83%, and the price of ferrosilicon rose from 5700 yuan / ton to 10,000 yuan / ton, a sharp increase of 75%. It directly leads to an increase of nearly 10,000 yuan in the cost of magnesium production. The magnesium industry branch called on relevant state departments to strengthen market monitoring of raw materials for magnesium production such as coal and ferrosilicon to stabilize market expectations and keep magnesium prices within a reasonable range. At the same time, the magnesium Branch of the China Nonferrous Metals Industry Association hopes that all member enterprises will overcome the difficulties in production and operation, actively improve the utilization rate of production capacity, abide by the law, operate rationally, and actively implement the contract under the premise of production safety. consciously resist excessive hoarding of magnesium and speculation that does not meet the needs of its own production and operation.
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