The current influence factors for Magnesium market and outlook on 2019
The following information of influence factors for Magnesium market that we would like to share for your reference:
1. VAT reduction:
It is not influence the business by currency mode in USD$ and for domestic RMB business, the tax must reduce from 16% to 13% as per government policy.
From Mg ingot producer’s perspective:
Producers should adjust prices based on supply-demand status. Moreover, producers should keep cutting production costs, improving product quality and optimizing production process so as to avoid potential risks brought by changing costs.
From downstream consumer’s perspective:
Consumers should try to expand application of magnesium and related products by improving production process, enhancing rate of finished products and strengthening research, and together with magnesium producers try to safeguard a stable market.
So we think Supply-demand status decides prices!!! The following supply-demand trend analysis data for reference.
3. Outlook on 2019:
Looking into 2019, we forseen that the light weight trend in China and other countries will be an opportunity for the magnesium industry and therefore will impose stricter requirements on magnesium whole-chain green development. In the future, overseas demand for Mg products will be stable but demand from the Chinese domestic market will grow. China's Mg consumption from desulfurization industry accounts for only 10% of the total magnesium consumption, far lower than the international 19% level. But as consumers impose higher requirements on steel performance, Chinese and overseas steel mills have to increase their Mg related products' consumption. With the development of industrial technology, lightweight has become the direction of extensive research and development in future years. The demand for magnesium in the future still remains very optimistic, and the price change still needs to be determined according to the market demand.
Hope the information can help you and if you have any opinions about the market, warmly welcome to disucss with us at any time.
