Price trend

According to the monitoring of SunSirs, as of the 10th, the average price of magnesium ingots in the domestic market was 21,900 RMB/ton, with a weekly increase of 5.97%. The magnesium ingot market was relatively stable at the beginning of the week, but suddenly surged after the Qingming Festival on Wednesday, with a cumulative increase of around 1,000 to 1,500 RMB/ton during the week.

Analysis review

The main reason for the significant rebound in magnesium prices this time was that the news of the upgrading and transformation of the semi-coke industry in the Fugu region continued to ferment. Some companies had planned to shut down their equipment, which may have an impact on the production of magnesium ingots. Downstream users had begun to actively inquire and enter the market.

In terms of factories

The magnesium price that fell to the bottom in the early stage had put pressure on the profits of magnesium factories, and manufacturers had a strong desire for growth. This week, driven by news, market transactions improved after the Qingming Festival, and manufacturers increased their prices, resulting in a chaotic situation. Some manufacturers temporarily did not offer prices and chose to wait and see the market.

In terms of demand

On Wednesday, the trading atmosphere in the market was very active, but in the following two days, downstream users were panicked by the sudden surge in magnesium ingot prices. Most downstream users found it difficult to accept the prices and chose to maintain a wait-and-see attitude.

In terms of raw materials

The average price of ferrosilicon in the Ningxia region was around 7,500-7,600 RMB/ton, with an average market price of 7,571 RMB/ton. The spot price had decreased by about 20-50 RMB/ton. On Monday, Ningxia's large factory resumed production, and this week's supply increased. However, the spot market remained weak and there were no significant fluctuations overall. Moreover, the bidding for steel mills in the southern region continues to slightly lower prices, while the bidding for representative steel mills in the northern region in April had just entered the market. The market lacked positive support and had a strong cautious atmosphere.

The semi-coke market was stable and slightly stronger. On April 1st, the mainstream carbide enterprises in Inner Mongolia increased their purchasing prices by 50-60 RMB/ton. Downstream carbide enterprises followed suit, and semi-coke enterprises subsequently increased their prices by 20-70 RMB/ton.

Market outlook

Overall, the price of magnesium ingots suddenly rebounded significantly this week due to the news of the semi-coke transformation. However, the supply side's quotation performance was very chaotic, and the demand side was also in a state of panic and anxiety. The actual market demand did not increase significantly. It is expected that the price of magnesium ingots may remain strong in the short term, and further market clarity is needed.

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