Since mid-to-late march,magnesium city in China has been in a declining channel.By late April,the factory quotation of main production areas in fugu was stable at about 16,700 yuan/ton,which continued until the end of April.Judging from the recent operation of magnesium market,the most significant feature is the lack of overall demand downstream,which is also the main reason for the market decline.Nearly more than a month,the downstream processing enterprise demand has not been fully opened,almost no large quantities of procurement activities.In the middle of march,there was a phenomenon of downstream centralized procurement,which also caused a number of magnesium enterprises in the main production areas of fugu to clear their stock,but since then,there has been no hot scene.
Supply and demand does not rise and fall,the market is difficult to rise and fall,although in a longer period of time magnesium enterprises are in support of the offer,but it is still difficult to stabilize its slow down trend.Around the middle of April,magnesium tried to raise its offer,but buyers didn't seem willing to accept it,so there was no drama.Traders has always been a reaction to the market extremely fast,but in this period of time is also wary of,according to several traders into April,their order is not much,only occasional small batch inquiry,for this case,traders think,or take a steady approach is better,so they are also price comparison,choose the cheap spot resources.
In the first quarter of 2019,shaanxi shenmu region and Inner Mongolia region of coal mine accidents in shanbei region,this paper makes the work safety department of the local coal mine safety inspections,once shutdown check local private coal mine,the coal supply tension in shanbei region,prices rise,this is also the main driver of magnesium ingot prices after the Spring Festival.But as local mines reopen,that push weakens,and magnesium companies'coal supplies return to normal,magnesium prices naturally fall.
After entering into the second quarter,domestic manufacturing industry enterprise starts rising gradually,the downstream processing enterprises is also increasing demand for the original magnesium,shanxi,henan and other places of magnesium powder factory,factory processing enterprises such as on the original demand for magnesium is also quite big,according to an enterprise henan magnesium powder,magnesium powder,the demand of this year will be higher than last year,so they are now a new production line installation and debugging,plans to expand new capacity,is expected to begin in May,after the demand for magnesium ingot is increase.An alloy company in henan province is also optimistic about its prospects this year.In 2019,more new materials will be put into application in automobile,rail transit,aerospace and other fields,and the demand for magnesium will increase significantly.Therefore,they also start in advance in raw material preparation.In February and march,they signed a supply contract,and they have long-term stable supply channels.
The stability of magnesium price is also conducive to the supply and purchase of upstream and downstream.In the past,when the price of magnesium fluctuated greatly,most buyers took a wait-and-see attitude,which resulted in hot quotation and light transaction.When the market supply and demand is relatively stable,the mentality of buyers and sellers is much more stable.Some insiders believe that it is easier to grasp the market trend and control risks in such a market environment.
Recently,the price of silicon iron,coal and other raw materials fluctuated slightly,but the overall production of magnesium did not have a great impact,and did not affect the ex-factory price of magnesium.Demand,therefore,the most direct impact on the recent city of magnesium,look from the current market relations,downstream processing enterprises,the demand for magnesium ingot is difficult to there is rapid growth in a short time,almost every enterprise is a raw material inventory,but also focus on the market,when the market price low appropriate restock,so it is difficult to pull the magnesium price going up high.Therefore,the industry insiders expect that the recent magnesium market will maintain a stable trend,quotation may also be lower.