Price trend  

According to the monitoring of SunSirs commodity market analysis system: last week (August 11-15), the magnesium ingot market in Shaanxi Province was slightly adjusted. The average market price was 17,450 RMB/ton at the beginning of the week and 17,437 RMB/ton at the weekend, a decrease of 0.07%.

Last week, the magnesium market showed a trend of first strong and then weak, with overall narrow fluctuations in stability: at the beginning of the week, the market was strong, and then, due to the slowdown in demand follow-up, the market turned to weak and stable operation. Some factories slightly reduced prices to win orders, while those factories that were not in a hurry to ship kept their quotations stable.

Analysis review

Supply and Demand

On the supply side, magnesium smelters were experiencing a shortage of production, leading most to maintain high prices. However, due to mid-month cash needs, some companies were opting for slight price reductions to boost shipments.

On the demand side, downstream customers were generally receptive to a price of 17,400 RMB/ton, but are generally cautious at 17,500 RMB/ton. Overall demand remained stable, though transaction volume declined towards the weekend.

Raw Materials

Recent market trends indicate that coal prices continued to rise. Driven by a combination of tightening supply and a continued recovery in demand, coal prices in major producing regions continued to climb. This trend had also led to rising prices for lignite, a downstream product of coal, while the ferrosilicon market remained relatively stable.

Future outlook:

The magnesium market was entering a period of consolidation, with supply and demand remaining largely balanced. It is expected that magnesium prices will remain relatively stable the next week.

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