Trend of magnesium (6.28-7.2, the same below)
At the beginning of last week, due to the decrease of market demand, the price fell back. In the middle and later period of this week, the market stabilized at 19000 yuan / ton of spot exchange including tax, a year-on-year decrease of 1.72%. As of July 2, the specific price ranges of each region are as follows:
In fugu area, the ex factory cash including tax is 19000-19100 yuan / ton; In Ningxia, 19000-19100 yuan / ton of ex factory cash including tax; In Taiyuan, the ex factory cash including tax is 19100-19200 yuan / ton; In Wenxi area, the ex factory cash including tax is 19200-19300 yuan / ton.
Market analysis of last week
Cost side: last week, magnesium price was affected by policy control, and the cost gap decreased. Last week, coke increased by 0.75%, and last week, it decreased by 2.02% year on year. However, the price of ferrosilicon and coke at the cost side is still at a high level, and the cost pressure supports the magnesium plant’s strong willingness to stabilize the price.
Demand side: at present, it is still in the off-season of the industry. This week, the quotation has declined, and the market transaction situation has gradually improved. However, generally speaking, most of the people waiting and waiting in the market are still in the majority, and the actual order recovery is limited.
Supply side: at present, some magnesium plants are in the summer maintenance period, and the inventory of large plants is low, but it is still difficult to change the overall situation of oversupply.
Future forecast
In the short term, the magnesium market will remain at the current level, and the price will not change greatly. At the same time, considering the support from the cost side, it is unlikely that the magnesium price will fall sharply, and the magnesium price may continue the weak and stable consolidation operation of the current price.
| PVA |