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Market Operation of Mid-grade Magnesia

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Market Operation of Mid-grade Magnesia

Date:2017-03-11 author:Hongkai Fire Resistance click:

The export volume of mid-grade magnesia decreases in varying degrees in the same and ring ratio. Short-term centralized replenishment procurement in the international market has come to an end. The decline in the European market and the renewed stalemate in the American market are the reasons for the sharp decline in the export market. According to the usual practice, the fourth quarter is the peak season of magnesia export. According to the current market situation, the magnesia export market in 2013 is scarcely prosperous.




In terms of average export price, the average export price in October was $360.18 per ton, which was $14.43 per ton higher than that in October 2012. Compared with September, the decline was more than 20 yuan per ton. After last month's unexpected surge, the average export price dropped sharply again, lacking the support of actual demand, and fearing that price-crushing transactions would reappear.




3. Prospects for the Future Market




Although this month's building materials household index hit a new high in the year, the growth rate has weakened significantly. With the gradual decrease of temperature, the traditional off-season of the building materials industry has come. It is known that many building materials enterprises in Shandong and Hebei have stopped work and are waiting for production, leading to the gradual decline of the upstream raw material production enterprises. At present, the start-up rate of light-burning magnesia kilns in Haicheng area has dropped to about 60%. It is expected that the whole of the next two months. The light burnt magnesia market will gradually weaken, and a new round of stockpiling will begin around the Spring Festival.




In November, with the intensification of environmental protection consolidation and the end-of-year maintenance of steel mills, the demand for refractories fell this month. The demand and inventory of iron and steel industry have a strong seasonal change law. From the end of the year to the Spring Festival, purchasing usually slows down or even stagnates. Thus the demand for magnesia is directly affected. In addition, the increasing proportion of direct supply between steel mills and production enterprises and the direct marketing strategy of steel traders also make the "winter storage" which has been cold in recent years more cold in this year. Without production plans, the market demand for magnesia is difficult to make a big improvement. On the other hand, with the reform of production structure, it is expected that in the future, with the improvement of product quality, the requirements for refractories will continue to increase. That is to say, the quality requirement of magnesia is getting higher and higher. It is expected that the advantages of high purity magnesia will be more obvious in the future, but the current production situation is difficult to meet the market demand. Therefore, the author suggests that manufacturers make detailed planning for the next year's production during the year-end rest period.




In the international market, the European and American markets continue to be weak and demand is limited. And the competition of magnesia market is more and more fierce, and the competitive advantage of domestic magnesia products is limited. According to the October export data, it is not difficult to see that the opening of the fourth quarter of the export market is not as expected, although the average export price is higher than the same period last year, but the volume of exports has fallen sharply. Towards the end of the year, the export market lacking favorable conditions will not be able to make a difference. The international steel market will be exhausted and the demand will hardly rise.

Medium grade magnesia


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