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According to the latest news in the market, the ferrosilicon price of large-scale manufacturers in the northwest region continued to increase, with an increase of 1,000 yuan/ton, and the price of ferrosilicon 72# was 12,800 yuan/ton including factory acceptance. The price of ferrosilicon 75# was 13,000 yuan/ton. .

Since December, not only the price of ferrosilicon has skyrocketed, but other raw materials for magnesium metal production, such as dolomite, solvent, magnesium chloride, fluorite, and even rock wool and sulfur powder, have risen in price due to the shortage of spot stocks in winter. , so that the original magnesium production costs remain high. According to the current price of ferrosilicon of 9,500 yuan, the original magnesium cost is still at a high level of over 18,000, and the magnesium plant has a serious loss. In addition, the current magnesium ingot market is weak, and the wait-and-see mood is serious. The magnesium plant is in a dilemma. Under the weight of the double pressure of cost and sales, some magnesium plants in Fugu began to reduce production twice. It is understood that manufacturers that reduce production by more than 50% are: Tianyu, Jin Wantong, Tianlong, Xintian, Huashun, Founder, Zhongxin, Dongxin, Wanxin. The remaining magnesium plants also have different levels of production cuts. The original production in the Fugu area was about 1,400 tons per day. Due to the rising factors of raw materials such as ferrosilicon, the current daily output of the Fugu area is less than 900 tons per day.

The Fugu Magnesium Association has learned through research that the current inventory of magnesium ingots is less than 15,000 tons. Due to the implementation of the production reduction strategy in most enterprises, there is no significant increase in inventory. At present, the mainstream price of the Fugu market includes taxed cash of 15,500 yuan / ton, including tax acceptance of 15,800 yuan / ton, the number of transactions is not large. It is related to the wait-and-see attitude of the purchaser, but it is not ruled out that the magnesium factory is reluctant to sell because of the serious cost. In the current magnesium market, the magnesium plant suffered a serious loss and its operating conditions were worrying. If the magnesium price remains unchanged, unless the price of ferrosilicon falls below 7,000 yuan. If the price of ferrosilicon is still firm at more than 9,000 yuan / ton, if the price of magnesium ingots does not reach 17,000 yuan / ton, some magnesium plants have made the worst plans, and are planning to cut production again or even completely stop production to reduce losses.