As the magnesium market stopped rising stabilized the previous week, due to weak downstream demand last week, market transactions were relatively small, the “supply demand balance” tilted towards the buyer. The magnesium market declined steadily.

As of February 17, 99.9% magnesium ingots were shipped Shaanxi Fugu area with tax-included cash prices ranging RMB 14,050 to RMB 14,150/ton, Taiyuan Ningxia RMB 14,150 to RMB 14,250/ton, Shanxi Wenxi RMB 14,350 to RMB 14,450/ Ton. In the case of a downward market, the actual transaction still has a lower price, the average price fell by about 300 yuan/ton the previous week.

It is understood that traders downstream users of the magnesia-magnesium oxide market last week focused on digesting pre-existing inventories, plus the purchasing psychology of buying up instead of buying down, placing cautious orders focusing on the market.

In view of the current increase in factory inventories, coupled with the pressure of corporate funds at the end of the month, market participants believe that the magnesium market will continue to callback this week, but the decline is expected to be large.

On February 17, I learned the manager of a magnesium plant in Fugu, Shaanxi that the recent downstream purchases have decreased, some factories that are in a hurry to ship withdraw funds have made small shipments at a price. The factory is still executing orders before the year, there are many stocks at the moment. The quotation has been adjusted yet. The price of the tax-included cash in the factory is still 14,200 yuan/ton. According to the source, after the Lantern Festival, there were many downstream orders, the pickling plant in Tianjin also had fewer shipments. In view of this, the person believes that magnesium prices will continue to fall this week, but the decline is expected to be large.

A magnesium industry source in Shanxi said on February 16th that due to the large amount of stockpiles by traders in the early stage, the stocks were mainly digested recently, the purchases were reduced, the downstream orders were prosperous. The person also believes that magnesium prices will continue to fall this week, but the market is expected to heat up in March.

A buyer in the northern region introduced on February 17th that the current factory quotation gap is relatively large. Some factories still insist on the factory-included cash quotation of 14300 yuan/ton for ordinary magnesium, some factory prices are lower than 14,000 yuan/ton. On February 17, the buyer purchased a batch of magnesium ingots the Fugu area at a factory-excluded price slightly lower than 14,000 yuan. The person said that early last week, he saw

Stabilizing the market, it is expected that prices will begin to fall on Tuesday, which means that both buyers sellers are now more sensitive to prices. The buyer also said that there were a lot of inquiries foreign customers last week, but the actual orders were few there was no hurry to purchase. For this week's market, the person also predicted that the magnesium price should continue to fall back a bit, but the market reversed faster could be considered according to inertial thinking.