Magnesium is moving forward steadily

        In the second week of June, the hot sun in many places in north China makes the magnesium city run stably. By June 12, 99.9% of the factories in Fugu area reported the main factory price including tax of 13,100 yuan/ton, and the main transaction price of 13,500 ~ 13,100 yuan/ton.Taiyuan area 13,200 yuan/ton;Wenxi area 133,300 ~ 13,400 yuan/ton, with the previous Friday's price stable.Since May, the magnesium market has stabilized at the bottom of the 13,000 yuan/ton node and moved forward steadily. Recent bargain hunting purchases by traders have formed a strong support for the magnesium market.

        It is understood that last week, the magnesium market transaction conditions are tepid, rigid demand orderly procurement, for the short-term trend of magnesium market, supply and demand did not significantly change the situation of magnesium market will continue to be stable.

        On May 12, I learned from the manager of a magnesium powder factory that after they made offers to foreign customers recently, the customers offered much lower prices than they offered, and orders were few and far between. In order to keep the workers in the factory, they had to accept the orders at the same price, and the profits of the factory further contracted.

        Recently, I also learned from traders that their orders are generally scarce, and they cannot receive any response after making offers to foreign customers. The analysis is mainly due to the impact of the epidemic, the pessimistic mood of the customer market, and the significantly weakened demand.

        According to the analysis, from the point of view of supply and demand, in the current overall weak demand, downstream orders are not much, supply is more abundant, magnesium market uptrend is difficult.Given the hot summer weather, factory worker shortages, limited production, and the current stable spot price of ferrosilicon, cost support for magnesium market will also be difficult to continue the stability trend this week.