Downstream demand is weak, magnesium city fell slightly

In the first week of June, magnesium market rapidly rose to 19,000 yuan/ton, affected by weak downstream demand, downstream users to accept high prices difficult, magnesium market under pressure fell slightly last week.Up to June 10, 99.9% magnesium ingot Fugu area factory quoted the mainstream ex-factory cash price of 18,500 yuan/ton including tax, some factories quoted 18,600 yuan/ton, the mainstream transaction price of 18,500 yuan/ton, and the lower price of goods is hard to find.Wenxi area between 18,700 and 18,800 yuan/ton, down about 500 yuan/ton compared with the previous Friday.

Weakening market, buy up do not buy down procurement psychology, last week's magnesium city transaction as a whole is not much, temporary inventory digestion of users wait and see the market.However, rigid demand is also a small amount of procurement on demand every day, forming a strong support for the magnesium market.

On June 10, the author learned from a magnesium industry, because the first week of June foreign users concentrated purchase more, this week the downstream high follow up is not much.This person believes that the current coal, ferrosilicate and other raw materials prices and peripheral market operation overall stable, magnesium prices continue to rise power is not strong, short term or will be stable in a small consolidation trend, wait and see the demand follow up.

Analysis that, from the point of view of supply and demand, in view of the recent weak downstream demand, downstream users accept high prices is not strong, magnesium city high operating pressure.Considering the current factory spot is not much, superimposed coal, ferro silicon prices high firm, supported by the cost of magnesium prices are expected to fall again difficult, this week's magnesium city or will be stable in a small consolidation trend, wait and see the demand follow up situation.

Coal market: Recently, the safety inspection of coal mines has become stricter. The number of coal mines that have stopped production due to maintenance inspection and reverse working face has increased. In addition, the recent rainfall in Shaanxi and Mongolia has limited the supply of coal.And the downstream procurement demand is strong, the production of coal mine shipment is smooth, the overall maintenance of supply is short of demand, Yulin coal prices are mainly stable.

Ferosilicon market: recently, the Ferosilicon market temporarily stable operation, Ferosilicon spot supply is tight, on June 10, the main producing area of 72# Ferosilicon cash natural block offer 8000-8100 yuan/ton, 75# Ferosilicon cash natural block about 8500 yuan/ton.Ferrosilicon analysis institutions believe that the short - term Ferrosilicon market will be stable.