[SMM Analysis] Export orders significantly reduce magnesium ingot transaction Market bleak

SMM4, March 3: affected by the overseas epidemic this week, the price of domestic magnesium ingots dropped sharply, but the transaction situation is still not optimistic. As of today, Fugu area 999 magnesium ingot mainstream quotation 13300 yuan / ton, the mainstream transaction price in 13200-13250 yuan / ton; Wenxi area 999 magnesium ingot mainstream quotation 13700 yuan / ton, factory transaction price 13600 yuan / ton. At present, the market quotation is more chaotic, the upper and lower limit gap is relatively large, Fugu area highest quotation 13500 yuan / ton, the lowest quotation 13200 yuan / ton, and a number of factories said not to quote, because the current market price is too low, do not consider the sale of magnesium ingots.

The outbreak of the international epidemic has a great impact on the export of magnesium products in China. Both raw materials and downstream processed products are facing no small challenges. According to SMM, at present, there are very few trading orders for magnesium ingot exports in April. Magnesium ingot manufacturers in Fugu region say that most of the export orders from downstream traders have been delayed and are not expected to be completed until the end of April at the earliest. The export situation of magnesium powder downstream is also not very optimistic. Magnesium powder factories in Shanxi and Henan provinces have indicated that there are no export orders for magnesium powder after April 15 for the time being, and the peak purchasing season for magnesium powder abroad was in the middle and late March of last year. However, there have been few inquiries for export trade orders since mid-March this year. Magnesium alloy processing plants are facing the same situation. After mid-April, the export of alloy workpieces has been fully delayed, so that the rigid demand for magnesium ingots downstream has also been significantly reduced.

According to SMM research, at present, the domestic sales of magnesium are mainly in the domestic downstream, and the inventory pressure of upstream producers is still within the controllable range so far. Producers in Youfugu region said that the current sales pressure of 95B magnesium ingots is higher than that of magnesium, because of the downturn in the sponge titanium market and the decline in prices, many sponge titanium manufacturers have temporarily suspended the purchase of 95B magnesium ingots, so that the price of 95B has dropped again and again or even close to the price of magnesium.

SMM analysis, in a large-scale economic situation, the magnesium ingot market trading winter will continue for some time, although the current price has been the lowest price in three years, but it is still difficult to stop the decline, so it is expected that the magnesium ingot price will still be reduced next week as the main trend.