Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi region decreased last week (4.21-4.27), with an average market price of 16,650 RMB/ton at the beginning of the week and 16,550 RMB/ton at the end of the week, a decrease of 0.60%.

Analysis review

Supply and demand side

Last week, the magnesium market showed a slight fluctuation trend. Considering the concentration of downstream enterprises entering the market for procurement in the latter half of last week, which overdrawn some short-term demand, the market buying power last week was significantly weak, the overall trading activity was poor, the transaction scale was at a low level, and the price fluctuated repeatedly within a limited range.

On the supply side, the current production and inventory levels were still in a low range, and mainstream factories had a firm attitude towards raising prices. When market prices showed signs of bottoming out, they often chose to suspend quotations to maintain the price system. From the demand side, following last week's centralized replenishment by domestic downstream enterprises, most of them were temporarily in the stage of inventory digestion; At the same time, recent overseas orders were approaching delivery milestones, but actual demand had not yet been effectively released, resulting in insufficient market purchasing momentum.

Raw material side

The price of coal used for the production of semi-coke continued to decline, with the overall price of semi-coke maintaining a stable trend, while the price of ferrosilicon fluctuated. In this situation, the cost side's support for prices had declined.

Market outlook

In summary, the mentality of the game between supply and demand had led downstream companies to adopt a wait-and-see attitude after completing phased procurement and stocking up, adopting a mentality of absorbing goods at low prices; On the upstream side, due to the many variables in the market that had not yet been implemented, there was a strong reluctance to sell, and a general strategy of raising prices was adopted to wait for the opportunity. Overall, the market is likely to maintain a basic stable pattern within a certain range in the future.

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