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[SMM magnesium spot Weekly Review (0420-0424)] strong magnesium ingot prices fell slightly in trading volume
Apr 24,2020 18:41CST
translation
Source:SMM
Due to varying degrees of production cuts by upstream magnesium ingot producers, magnesium ingot prices remained stable this week, with a small price gap compared with last Friday, but overall trading volume fell. Downstream in the current price willingness is not strong, and upstream production enterprises facing the end of the month account period and possible inventory pressure, the willingness to bid may weaken, magnesium ingot prices are expected to fall slightly next week.
The content below was translated by Tencent automatically for reference.

SMM4, 24th:

Magnesium ingot

The results of cutting production and limiting production by upstream magnesium ingot producers have been reflected, and the price of magnesium ingots has remained basically stable this week, with a small gap compared with last Friday. As of today, Fugu area mainstream factory transaction price 13050-13100 yuan / ton, Wenxi area mainstream transaction price is 13400 yuan per ton.

In terms of production, several magnesium ingot production plants with larger output have varying degrees of production reduction behavior, and some factories with smaller output have already overhauled ahead of time or reduced production limit. According to SMM research, the overall production in Fugu area has decreased by about 25-30%. Many production plants say that at present, only 95B magnesium ingots are produced, and there is little sales of magnesium.

On the demand side, overall demand for magnesium ingots fell this week. At present, it seems that the main reason for this week's strong prices is that upstream producers reduce production and limit production, and the general inventory pressure is small, so upstream prices are more willing, but the overall actual trading volume of the market is still not optimistic, orders are still mainly downstream demand. According to SMM, most magnesium ingot manufacturers and traders have said that trading volume has decreased this week, which is also a sign that the downstream psychological price is lower than the upstream psychological price.

Magnesium powder

The price of magnesium powder is the same as last week. Magnesium powder prices also remained relatively stable this week under the influence of magnesium ingot prices, while overall trading volume decreased slightly. Some magnesium powder mills said that because of the limited production of domestic downstream steel mills, the trading volume of magnesium powder has decreased slightly. Affected by the overseas epidemic, export orders have fallen sharply since late March, and most magnesium powder mills now say they have no export orders or even inquiries. The mainstream transaction price of 20-80 mesh magnesium powder this week is 14300-14500 yuan / ton.

Magnesium alloy

The price of magnesium alloy is the same as last week. The price of magnesium alloy has not changed much, and the overall order turnover has been reduced. Affected by the sales of end products, the influence of downstream accessories factory and die casting factory on the demand of magnesium alloy is gradually reflected. Some magnesium alloy smelters said that at present, orders for magnesium alloys in the Central Triangle region have dropped by about 2/3, while orders in the Yangtze River Delta region have dropped by about 1/3, while export orders have completely disappeared. Because most of the magnesium alloys are produced according to the order quantity, some magnesium alloy factories begin to reduce or even stop the production of magnesium alloys.

Future forecast: affected by the downstream magnesium alloy, magnesium powder just need, the superimposed export is greatly reduced, the future short-term magnesium ingot trading volume will not have the tendency to release. However, downstream in the current price willingness is not strong, and upstream enterprises face month-end accounting period and this May Day holiday may have inventory pressure, the willingness to bid may weaken, so it is expected that the price of magnesium ingots will fall slightly next week.

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