Spot tight support magnesium prices strong rebound

After the Spring Festival, factory spot generally tight, coupled with the opening of the bull market in the base metals, strong fundamentals, magnesium prices rebounded strongly.By February 26, 99.9% magnesium ingot Fugu area factory quoted mainstream ex-factory cash price rose to 15,300 ~ 15,500 yuan/ton, Wenxi area 15,600 ~ 15,700 yuan/ton, 800 yuan ~ 1000 yuan/ton higher than the previous Friday, so far, two weeks after the Spring Festival, magnesium price quickly increased by about 1300 yuan ~ 1500 yuan/ton.

Last week, the magnesium price rose steadily with a daily rate of 100 yuan/ton. On Thursday, it began to jump, with the price in the main producing area of Fugu rising to 15,000 yuan/ton. On Friday, the factory's offer increased to 15,300 to 15,500 yuan/ton.It is understood that last Monday to Thursday, the magnesium city transaction is better, the downstream procurement into the market, Friday, magnesium prices again after the high transaction is less.

On February 26, the author learned from the manager of a magnesium plant in Fugu area that the ex-factory cash price of 15, 300 yuan/ton of general magnesium with tax had a deal, and the daily price rose to 15, 500 yuan/ton on February 26, and the plant is currently out of stock.

Another magnesium industry said that recently, magnesium prices rose too fast, just after the Spring Festival, many downstream enterprises have not fully resumed production, some supply can not keep up.Considering the current factory spot generally tight, some factories row single production, the person believes that the recent magnesium market strong support.

Analysis that, from the point of view of supply and demand, due to the Spring Festival before and during the Spring Festival factory pre-sale futures more, less inventory, and the downstream rigid demand is expected to be released in succession, the tight balance of supply and demand, coupled with ferro price strong support, more positive factors, magnesium city is expected to be more strong to good running situation this week.

Ferrosilicon market: last week, ferrosilicon market strong operation, the news, the influence of difference of producing electricity notice ferrosilicon futures disk price go high, some factories in foshan confidence is good, price increase, also have the factory to suspend offer, on February 25, producing 75 # ferrosilicon cash natural block price between 6800 yuan and 7000 yuan/ton.Ferrosilicon analysis institutions believe that the current inventory of ferrosilicon is not large, the impact of Inner Mongolia policy and other positive factors, ferrosilicon will continue to show a rising trend.