In the first half of this week, the magnesium market continued to recover moderately. The main reason is the rise in the prices of raw materials ferrosilicon and coal, and the increase in costs. In Shaanxi Province, Magnesium 99.9 Price rose to 18,700 RMB/Ton, and transaction price in the market rose to 18,600 RMB/Ton. Compared with last week, it increased by 100-200 RMB/Ton. Because Shaanxi is the largest producer of Magnesium Ingot , other regions have absorbed the impact, and prices have also been raised accordingly.
Magnesium Price Analysis
The price of Magnesium 99.95 has remained around 19,000 RMB/Ton this week, and there is no sign of improvement on the demand side for the time being. Transactions in the Mg 99.95 market are light, and transactions at high quotations are particularly difficult. The pressure of market competition is obvious, and buyers are not active. The price of Mg Ingot 99.95 will follow the magnesium 99.9 price.
Rising raw material costs are the main reason for the price increase. The raw materials of magnesium ingots mainly include raw coal, dolomite, ferrosilicon, sponge titanium, etc. Price of raw coal The current price is 850 RMB/Ton. The price of dolomite is stable at 135 RMB/Ton, and a land transportation cost of 40 yuan per ton needs to be added. Another raw material, Ferro Silicon, has been rising in price recently. The FeSi model mainly used in the production of magnesium ingots is ferrosilicon 75. Recently, steel mills’ bidding prices for ferrosilicon have increased, and the spot market is slightly tight in supply. Moreover, the favorable macroeconomic situation has caused the price of ferrosilicon to increase by around 200 RMB/Ton.
The domestic titanium sponge market is relatively stable. There is currently no major inventory pressure on factories and they are actively raising prices. The overall price has not changed much for the time being. At present, the mainstream price of domestic 1# sponge titanium market is around 51,000-52,000 yuan/ton. Moreover, most of the downstream companies are bearish on the market outlook. So there is the possibility of price declines.
Magnesium Price Forecast
About the Mg Ingot export market, affected by the rise in domestic magnesium prices in China, Mg Ingot FOB prices gradually increased this week. For three consecutive days on Monday, Tuesday and Wednesday, the price increased by 20 USD/Ton every day. The current price of Mg 99.9 FOB Tianjin is 2650 USD/Ton. The price of Magnesium 99.95 FOB Tianjin is 2710 USD/Ton. The export quantity may be higher than the level of the same period last year. Judging from the past few months, China’s largest export regions of magnesium ingots are still the Netherlands, India, Canada, South Korea and Japan.
Taken together, raw material costs will continue to rise in the short term. Although there is no significant improvement on the demand side, demand has not decreased significantly and has maintained a stable trend. Therefore, Magnesium Ingot price is likely to remain stable and rise in the near future.