On December 28, 2023, the cash and tax prices of magnesium ingots (99.9%, non acid washed, simple packaging) from various major production areas in China remained stable, with an overall range of 20300 to 20600 yuan/ton. Negotiations on actual orders were the main focus.
The specific price ranges for each region are as follows:
Factory tax inclusive spot exchange in Fugu area is 20300-20400 yuan/ton; Current exchange rate in Taiyuan area is 20400-20500 yuan/ton; Current exchange rate in Wenxi area is 20500-20600 yuan/ton; The current exchange rate in Ningxia is 20300-20400 yuan/ton.
Magnesium ingots are native magnesium ingots in accordance with the national standard (GB/T3499-2011); Non acid washing, no wooden pallets, and non payment acceptance price, actual order negotiation is the main focus.
Overview of the trend of metallic magnesium in December
According to the Commodity Market Analysis System of Shengyishe, the average domestic market price on the 28th was 20633.33 yuan/ton, a decrease of 1.28% compared to the average market price of 20900 yuan/ton in early December (12.1); Compared to the beginning of the year (1.1), the average market price was 21700 yuan/ton, a decrease of 4.92%.
In December, the magnesium ingot market continued its stalemate since mid November, maintaining a weak and stable trend. Mainstream factories offered a stable price of 20500 yuan/ton including tax in spot exchange. In the stalemate game between supply and demand, on the one hand, the market transaction activity was not high at that time, and the atmosphere of cautious observation was highlighted. The weather conditions in the main production areas caused difficulties in shipping and transportation, and the overseas market was lukewarm. On the other hand, the price of magnesium ingots has approached the cost line, and the market price is in a dilemma of rising and falling.
In terms of supply and demand
The manufacturers that stopped production on the supply side have steadily resumed production, and the overall market output has shown a slight upward trend. The overall supply is relatively sufficient. Mainstream factories still have a strong willingness to stabilize prices, coupled with individual manufacturers having inverted costs, resulting in a weaker willingness to ship at low prices. The downstream demand side continues to be sluggish, coupled with fluctuations in export exchange rates and tightening of year-end funding chains, some factories have started to adjust prices slightly according to market trends. At the end of the month, due to the impact of the international situation, the freight rates for European shipping increased significantly, and export orders were further reduced, resulting in a bearish price drop of 50-100 yuan/ton.
Ferrosilicon experienced a cumulative decline of 1% in December
In December, with the decline of silicon iron futures and the pressure of steel bidding, the spot market continued to be weak. On December 28th, the price of silicon iron in Ningxia was between 6550-6700 yuan/ton, with an average market price of 6661 yuan/ton. Currently, profits of ferrosilicon enterprises are being squeezed, production enthusiasm is average, and downstream demand is difficult to release. The spot operation of ferrosilicon still maintains a conservative attitude.
In December, Lancan started its fifth round of price reduction, with mainstream downstream calcium carbide enterprises raising and lowering Lancan’s medium and small materials by 60-90 yuan/ton. Although the high transaction volume of by-product tar has increased, the losses of Lancan plants are still severe. As of December 27th, the mainstream prices of small and medium-sized materials in the Shenmu market are 1080-1210 yuan/ton, and the coke surface is 680-750 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 1100-1220 yuan/ton, and the coke surface is 740-750 yuan/ton. Magnesium ingot factories have been affected by the decline of blue charcoal, resulting in increased production costs and little willingness to lower prices.
Future Market Forecast
Overall, the magnesium ingot market will operate weakly and steadily in December, and the market will still be in the game stage. The situation of oversupply in the market is difficult to improve. With no favorable factors in the market, prices will fluctuate narrowly within the range.
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