After a brief pullback the week before, magnesium prices rose "crazily" last week due to the high pressure of environmental protection in Fugu area, as well as large increases in coal and ferrosilicon prices. To August 27, 99.9% magnesium ingot Fugu area futures transaction price rose to 26000 yuan / ton, spot price rose to 26500 yuan / ton, other regions followed the adjustment.
Last week, the factory was in short supply, the willingness to raise the price is strong, downstream users purchase on demand, transactions have been followed up one after another, it is understood that the current factory is still dominated by order production. For this week's magnesium market, the current market bullish sentiment is in the majority.
On August 27, the author learned from the sales general manager of a magnesium factory in Fugu area that the main reason for the sharp rise in magnesium prices was that the factories were out of stock. At present, the manufacturers basically had no spot, and all of them were selling futures in advance, and the futures schedule was long. In addition, the environmental protection in the place was under heavy pressure, the supply tension intensified, coupled with the large increase in coal and ferrosilicon prices, and downstream users were affected by panic to prepare goods in advance, and the transaction has been followed up all the time. Multi-factor superposition resonance drives the price of magnesium skyrocketing. The person said that in recent days, magnesium prices have skyrocketed, and the risk has increased in the later stage, and they have been shipping goods with the market without leaving inventory. For the future trend, the person believes that it mainly depends on the follow-up of the order.
A manager of a processing enterprise told me that the rising magnesium price this year has put a lot of pressure on downstream processing plants and dealers, especially the sharp rise in magnesium prices in the past week, and dealers with serious losses have no choice but to breach the contract and destroy the order.
According to the analysis, from the point of view of the relationship between supply and demand, in view of the fact that the current factories are generally out of stock, the shortage of supply is difficult to alleviate in the short term, and the downstream rigid demand forms a certain support to the market, it is expected that the magnesium market will still be strong and strong this week. wait and see how follow-up orders follow up.
Ferrosilicon market: last week, the ferrosilicon market was running strongly, the operating rate of the main production areas of ferrosilicon supply side showed further tightening, the confidence of manufacturers was strong, and the quotation went up. On August 26th, the natural block price of 7K ferrosilicon in cash in the production area was 9300 yuan-9400 yuan / ton, while that in some areas of Shaanxi province was 10, 000 yuan / ton. Some factories do not quote and wait and see the market. Ferrosilicon analysts expect that ferrosilicon prices will be strong and strong in the short term.
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