Market review of the first half of 2021 and outlook of the second half of 2021

In the first half of 2021, the overall operation of magnesium sand market in Liaoning was in a volatile downward trend. The overall magnesium sand market was relatively dull, procurement demand decreased and poor transaction, and the rise of raw material cost slowed down the speed of magnesium sand price reduction to some extent, but it was difficult to reverse the decline trend. In Section 1, the price decline trend of electromolten magnesium sand is more obvious, and the sintering magnesium sand is affected by environmental protection factors, and the rise and fall fluctuates greatly. By the end of June this year, taking MgO ≥ 95.5% of the electric molten magnesium sand block as an example, the factory price was 2800 yuan / ton (above is the factory tax price), down 19.6% compared with the beginning of the year.

Raw materials: In February, Haicheng opened 40 tons of gunpowder for mining, which increased the supply of raw materials, but did not affect the ore price. By the beginning of June, raw magnesium prices rose, or about 50 yuan / ton. Now, the raw material price of Grade I magnesite is 420-430 yuan / ton and the price of Grade magnesite is 470-480 yuan / ton. The rising cost of magnesia has slowed down the price decline.

Supply: the overall adequate supply of magnesium sand in the first half of the year. Due to the Spring Festival, most of the magnesium production enterprises in Liaoning normal production, inventory reserves reached a high level, enterprises have reduced prices to ship. In March, the 100-day environmental attack and environmental inspectors continued, banning open-air screening and dust. The sintering magnesia enterprises limited production, prices showed a small boost. However, the impact on the price of electric molten magnesia is less. At the present stage, the production of enterprises in Liaoning has returned to normal, the overall construction is good, and the inventory reserve of enterprises has reached a high level. Individual enterprises with urgent shipment, the quotation is weak.

Demand: in February, steel, cement and other high temperature enterprises stock period past, the overall market demand began to show a downward trend. In addition, the recent domestic steel enterprises' environmental protection stop production is increasingly frequent, magnesium sand downstream demand is weak. Export business has resumed. From January to May, the total export of electromolten magnesium sand reached 258,833.446 tons, increasing by 29.25% compared with the same period last year, showing the overall volatile upward trend.

Summary: At present, there are fewer downstream inquiries, so it is difficult to improve significantly, and the inventory consumption of magnesia market is slow. Environmental protection has been normal, and it is difficult to affect the price of magnesium sand. But according to the company reflects, since this month, domestic and foreign demand has a recovery trend. According to previous experience, August to September may usher in the peak magnesium sales season. So, Magnesia is expected to rally in the third quarter.