The magnesium market continued to rise this week, and the supplier is mainly in the futures order arrangement mode. As of August 13, the market quotation of magnesium price was 22000 yuan / ton. On August 12, the magnesium commodity index was 133.23, an increase of 1.22 points over yesterday, a record high in the cycle, and an increase of 83.31% over the lowest point of 72.68 points on January 10, 2016（ Note: period refers to 2012-03-01 to now)

As of August 13, the specific price range of each region is as follows:

Ex factory tax cash exchange in fugu area is 22400-22500 yuan / ton; The ex factory tax included spot exchange in Ningxia is 22400-22500 yuan / ton; Taiyuan factory tax included spot exchange 22500-22600 yuan / ton; The ex factory tax included spot exchange in Wenxi area is 22600-22700 yuan / ton.

High raw materials support magnesium market transaction follow-up

In terms of ferrosilicon, the spot market remains high, and the spot supply of ferrosilicon is tight. At present, the price of ferrosilicon has reached 8666.67 yuan / ton; In terms of coke, the supply of coke in the producing area continued to tighten, and the second round of coke increase landed. The price of coking coal in the main producing area increased significantly by 200-350 yuan / ton. Due to the shortage of railway capacity, the freight of some routes continued to rise this week. The tax-free freight of Tangshan Guzhi in Xiaoyi, Luliang, Shanxi was about 185 yuan / ton. The high price of ferrosilicon and coke at the cost side supports the continuous rise of magnesium price.

Shortage of spot supply and high willingness of merchants to support prices

The spot of magnesium ingot Market is tight. Affected by environmental protection policies, some magnesium factories reduce production and limit production. The spot inventory of factories is at a low level. Merchants have a high willingness to support prices, and the downstream bargaining power is limited. Most factories are mainly trading in futures. Under the influence of buying up rather than buying down, downstream procurement is more active.

Future forecast

In the short term, the inventory of magnesium ingots in the spot market continues to be tight, businesses have a high willingness to support prices, superimpose high cost support at the raw material end, and many favorable factors affect type I. It is expected that coal prices will continue to operate at a high level in the near future.