Affected by the weak demand support, the pressure on the magnesium market continues to be weak. On Monday, it was learned that 99.9% of the magnesium ingot factories in Fugu area quoted the mainstream ex-factory cash price of 22,000-22,100 yuan/ton including tax, and some factories quoted 22,200 yuan/ton. The mainstream transaction price is 22,000 yuan/ton, which is about 100 yuan/ton weaker than last Friday, and other regions follow suit.

It is also understood that the downstream has continued to focus on on-demand procurement in recent days. At present, most factories are already cost upside down and are struggling to move forward. Magnesium market generally waits and sees on Monday.

On the 12th, a general manager of the sales of a magnesium factory learned that coal prices have risen recently and costs have increased. At present, the cost of the factory has been inverted. However, due to factors such as the domestic epidemic situation, the downstream demand has deviated. In desperation, they plan to reduce production to deal with it.

According to the analysis, from the perspective of supply and demand, due to the impact of the recent domestic epidemic, the domestic demand is hardly optimistic, and the short-term pressure on the magnesium market is still obvious under the situation of low foreign demand and overall poor demand. Considering that the cost of the current factories has been inverted, some factories are not willing to continue to cut prices and ship goods, and some factories have reduced production to deal with it. It is expected that the price of magnesium will be further reduced.