Price trend

According to the monitoring of SunSirs, as of February 3, the average price of the domestic market was 22,000 RMB/ton, up 1.23% from last week. At the beginning of the week, the price of magnesium rose slightly by 200 RMB/ton, and then stabilized.

Analysis review

Supply and demand

The magnesium plant was shut down for maintenance before and after the holiday. After the holiday, the price of the factory was firm. The downstream customers were still waiting and waiting. The overall demand was poor. Some customers mainly digested the temporary inventory.

Raw materials

The average market price of ferrosilicon in Ningxia was around 7,900-8,100 RMB/ton. After the Spring Festival, the futures market price dropped sharply, driving the spot market price to lower. The ferrosilicon manufacturers in Ningxia had resumed production. Yuexin had resumed production and ignited one furnace, and Shengjin had resumed production. The production of manufacturers in other regions was relatively stable, with the national operating rate (capacity utilization rate) of 45.21% as of February 2; the average daily output was 17,058 tons. National ferrosilicon production (weekly supply): 119,400 tons.

The price of semi-coke in Fugu market was stable. All coal mines had not yet resumed work and production, and the upstream and downstream of the semi-coke enterprises had a wait-and-see attitude, and the market was strongly bearish about coal prices.

Market outlook

In general, the market advocates a cautious wait-and-see atmosphere, and the manufacturers' quotation sentiment is strong, but the small drop in raw material prices and the poor follow-up of downstream demand have led to the pressure on magnesium ingot prices. Considering the rigid demand of some enterprises entering the market after the Lantern Festival, it is expected that the magnesium ingot prices will remain stable in the short term.

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