Magnesium Market in August , 2022
August 17, 2022
Since this week, the price of magnesium has been continuously rising, especially on Monday/Tuesday, the market price has soared by about 1,500 yuan/ton. So far, the quotations of mainstream factories in Fugu area are 24,500--25,000 yuan/ton including tax. Prices in other regional markets followed suit.
It is learned from the market that the sharp rise in magnesium prices in this round is mainly due to the following factors. On the demand side: ① Some foreign orders in the early stage were rushing to the shipping period, and part of the demand was released; ② Some domestic customers who just needed to rest on weekends failed to purchase in time. Returning to the market for replenishment just caught up with the rising price; ③ With the rapid jump in market price, some middlemen also joined in speculative stockpiling due to the sentiment of "buying up and not buying down". Supply side: After the price of magnesium has risen, the market inventory has been digested, and the factory has seized the opportunity to continuously raise the price.
It is true that the superposition of various favorable factors has caused the spot price of the market to rise sharply, but considering that the price of magnesium has been rising for several days, and the increase is relatively large, some downstream demand customers and traders have begun to turn to a wait-and-see attitude. Today, I understand that the market is relatively stable at present.
In the short term, the overall inventory pressure on the supply side is not high for the time being, and with prices rising day by day, the overall mentality of merchants is improving, and magnesium prices are strong and still supported; at the same time, considering that the market demand for high prices is generally followed up, customers purchase cautiously and wait and see Sentiment is strong, and it is expected that the market may be stable and strong at the end of the week, and the price increase of magnesium may be narrowed. Wait and see the follow-up market transactions.