Overview of magnesium metal price trend

According to the monitoring of the commodity market analysis system of SunSirs: the market of magnesium ingots in Shaanxi Province fell this week (5.26-5.30), with the average market price at the beginning of the week at 17,050 RMB/ton and the average market price at the weekend at 16,900 RMB/ton, a decrease of 0.88%.

Last week, the magnesium market showed a trend of adjustment with narrow fluctuations. In the first half of this week, as market demand has not improved significantly and some factories are facing financial pressure near the end of the month, these factories have chosen to reduce prices slightly to promote sales in order to win orders. At the same time, some factories have maintained stable quotations or temporarily chosen not to quote, so the overall magnesium market has continued the weak and stable consolidation pattern.

Supply and demand side

Recently, the downstream market is still dominated by rigid demand purchases, and some factories have flexibly adjusted their sales strategies according to market conditions and actively shipped goods. For factories without inventory pressure, the willingness to continue to reduce prices for shipments is not strong. At present, spot resources are relatively limited, and factories are generally unwilling to ship at low prices. Affected by external factors such as the uncertainty of the US tariff policy and the slowdown in global economic growth, downstream buyers are generally cautious at present. Against this background, it will be difficult for the magnesium market to achieve a significant improvement in the short term. Given that there are not many spot reserves in factories, the price of magnesium may remain at the current level, showing a trend of stable and narrow consolidation. All parties in the market are seeking a new balance point between supply and demand.

Comprehensive analysis

Under the current overall weak demand and no significant positive news to stimulate the market, it is expected that the operation of the magnesium market will still face many challenges in the short term, and the market will continue to be under pressure; however, considering that the current factory spot inventory is generally at a low level, coupled with the continued existence of rigid demand purchases, this will provide some support for the price of magnesium, and it is expected that the difficulty of further decline in the magnesium market will increase. On the whole, the magnesium market may maintain a weak and stable trend before the Dragon Boat Festival, and all parties in the market will pay close attention to the follow-up of subsequent demand.

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