In the second week of July, the domestic magnesium market showed a weak consolidation trend. At the beginning of the week, affected by the fermentation of environmental protection policy news, the price of the industry had a small rebound. On Monday, the market quotation of mainstream areas was 19500 yuan / ton. However, in the later stage, the market price was increased, and the downstream customers did not follow up obviously, resulting in limited price rise and steady price reduction. On Friday, the price fell back to 19100 yuan / ton. As of July 12, the specific price ranges of each region are as follows:

In fugu area, the ex factory spot exchange including tax is 19500-19600 yuan / ton; In Ningxia, the ex factory spot exchange including tax is 19500-19600 yuan / ton; In Taiyuan area, the ex factory spot exchange including tax is 19600-19700 yuan / ton; In Wenxi area, the ex factory cash including tax is 19700-19800 yuan / ton.

Market analysis

Cost side: Recently, the price of coal market is gradually clear, affected by the price protection policy, the price of coal is gradually callback, the support of cost side is weakened, and the price of magnesium is falling; Ferrosilicon market according to relevant news reports, Zhongwei area is limited, and Fugu area is forced to reduce production due to insufficient power supply.

Supply and demand side: the downstream customers are not enthusiastic in purchasing, most of them hold a wait-and-see attitude, and the inventory of magnesium on the supply side is relatively stable. Some businesses are optimistic about the future price due to the news of LAN Tan upgrading and transformation, and they are reluctant to sell, so there is little pressure on shipping.

Future forecast

Business analysts believe that in the short term or will maintain a weak stable situation, the demand side is relatively flat, superimposed coal prices fall, so the price upward lack of support.