Trend of magnesium in February

The price curve of magnesium market in February can be described as twists and turns. Specifically, when returning to the market after the festival at the beginning of the month, the market price is relatively stable without the support of bad and good consumers. In the second half of this month, the price of magnesium began its downward channel, closing down 9.26% in a week. The downstream transaction was sluggish and lacked favorable support. At the end of the month, the market rebounded again, rising 12.65% a week, which caught many people in the industry off guard. According to the price data of business agency, as of February 27, the market tax included spot exchange was 46000 yuan / ton, up about 3000 yuan / ton from the beginning of the month, an increase of 6.98%.

Market analysis

In terms of market: when the Spring Festival holiday comes back, there are not many purchases when the downstream inventory is temporarily digested, the demand performance is relatively mild, and the power of price rise is insufficient. After the Lantern Festival, the demand release was less than expected, and the overall transaction rhythm was slow. When the magnesium price fell to the buyer’s psychological price, the market transaction enthusiasm increased.

In terms of inventory: according to the business agency, the market transaction improved last week, and the inventory of magnesium plants gradually decreased. It is learned from traders that the current magnesium price is at a high level, and the inventory situation of each factory is different. The spot inventory of some magnesium plants is in a hurry, so they do not offer for the time being, which highlights the reluctance to sell.

Policy: the environmental protection policy continues to affect the price of magnesium ingots. Recently, the market once again heard the news that the transformation policy of Yulin blue carbon furnace will be implemented, and the magnesium market will make waves again. Stimulated by this news, the market trading atmosphere heated up again last week, the panic of downstream customers spread, the procurement was extremely active, and the procurement began with foreign orders.

Future forecast

At present, the price is at a high level, the actual high price acceptance of downstream customers is limited, the procurement operation is more cautious, the upward driving force of magnesium price is weakened, while the inventory pressure of magnesium plant is small as a whole, and the factory has a strong willingness to support the price due to the impact of environmental protection policies. According to business analysts, the price of magnesium ingots remained high and stable in March, and the expected impact of the upcoming transformation of blue carbon facilities in Yulin on the price of magnesium ingots only involves some magnesium enterprises in Yulin, which has a relatively small impact on the supply and demand of magnesium ingots. For the future market, the market demand follow-up is ahead of the policy.