Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province fell and fluctuated overall, with an average market price of 16,175 RMB/ton at the end of the month and 16,925 RMB/ton at the beginning of the month, a monthly decline of 4.43%.

Analysis review

Magnesium prices sharply decreased in the first half of June, and then fluctuated and bottomed out in the second half. In the early stage, there was a continuous pullback, while in the later stage, there was a strong rebound after hitting the bottom. During this process, both the supply and demand sides engaged in a game around prices, and the level of market activity gradually increased.

Supply and demand side

On the supply side, the operating rate of original magnesium production enterprises was still at a low level, and companies generally had a strong willingness to raise prices. Some companies suspended quotations and shipments in the low price range.

On the demand side, when prices dropped to a low level, downstream purchasing volume significantly increased. After the price began to rise, the willingness of downstream enterprises to replenish also further increased. After the price increased, the wait-and-see atmosphere on the application side remained strong, and downstream buyers mostly adhered to the strategy of essential procurement, maintaining low inventory levels. Such a cyclical supply-demand game had led to a bottoming out of magnesium prices.

In terms of raw materials

In terms of raw materials, there was a slight downward trend in coal prices, semi-coke prices, and ferrosilicon prices at the beginning of the month. The subsequent coal price correction and continuous rise provided support for magnesium prices.

Market outlook

In the short term, the trend of magnesium ingots is expected to continue the bottom game state, with a stable and strengthening operating trend. On the supply side, low inventory and rigid cost support, along with upstream raw materials, provide a solid bottom support for magnesium ingot prices.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.