The price of magnesium first suppressed and then rose.

In the first week of November, magnesium prices showed a trend of first suppressing and then rising. In the first half of the period, due to the continued weak willingness to purchase downstream, magnesium prices fell rapidly again, and the lowest price of common magnesium fell to 26000 yuan / ton on Wednesday. As magnesium prices fell close to the buyer's psychological level, some downstream users stopped watching and entered the market, leading magnesium prices to rebound from the bottom last Thursday and continued to rise steadily on Friday. On November 5, 99.9% of the factories in the magnesium ingot Fugu region reported that the mainstream ex-factory cash price including tax was 32000-33000 yuan / ton, and some factories quoted 35000 yuan / ton. It is understood that the mainstream transaction price rose to 31000 yuan / ton, rebounding about 4000 yuan / ton from last week's lowest price. Other areas follow the adjustment.

At present, the profits of magnesium factories have been significantly reduced, cost-end support, coupled with the gradual recovery of downstream demand, market participants believe that it is difficult to lower magnesium prices in the short term, and it will be more stable and firm.

On November 5, the author learned from a general manager of a magnesium factory in Fugu area that at present, the factory does not have spot, futures are pre-sold until November 12, do not quote for the time being. The person believes that recently, the price of blue carbon has continued to fall, the cost of gas needed for magnesium production has risen, and the price of magnesium should continue to rise and remain within a reasonable range.

A general manager of a trading company said that he did not expect the price of magnesium to rebound quickly. At present, their orders are mediocre.

The analysis shows that, from the point of view of the relationship between supply and demand, at present, the profit space of the magnesium factory has been significantly reduced, supported by the cost, it is expected that the factory quotation will be strong. Taking into account the overall poor downstream demand, downstream procurement is still very cautious, magnesium prices continue to rise is also difficult, this week the magnesium market may be a sound operation, wait and see demand follow-up.