According to the commodity market analysis system by SunSirs, the magnesium ingot market in Shaanxi experienced a slight decline this week (9.15-9.19). The average market price started at 17,050 RMB/ton at the beginning of the week and fell to 17,025 RMB /ton by the weekend, marking a decrease of 0.15%.

Entering the third week of September, the magnesium market showed a pattern of initial fluctuations followed by stabilization. Early in the week, factory quotations saw a mild increase, but insufficient demand follow-through made high-priced transactions challenging. By midweek, rising costs of coal, ferrosilicon, and dolomite strengthened factories’ resolve to maintain firm prices, leading to a slight upward adjustment in quotations. However, reduced export demand and cautious domestic procurement resulted in low transaction volumes at higher price levels, with the market maintaining an overall stable yet oscillating trend.

Supply and Demand Analysis

Supply Side:

Domestic magnesium smelting enterprises maintained stable supply levels with no significant fluctuations.

Rising costs of raw materials (coal, ferrosilicon, dolomite) and energy have increased production costs, putting considerable pressure on enterprises.

Due to cost pressures, magnesium smelters exhibited a strong willingness to hold prices firm, bolstering market price support.

Demand Side:

Overall procurement volume dropped significantly compared to the previous week, with reduced market activity.

Non-standard primary magnesium accounted for a notably higher share of purchases, becoming the main component of procurement this week.

Export demand weakened, and domestic buyers adopted a cautious approach, limiting transactions at higher price points.

Raw Material Cost Impact

Coal: Prices surged significantly, driving a slight increase in the cost of semi-coke, a downstream coal product.

Ferrosilicon: Prices rose notably due to higher raw material costs and increased demand.

Dolomite: Rising prices further elevated magnesium smelting costs.

Combined Effect: The confluence of these factors significantly increased overall production costs, reinforcing price support.

Comprehensive Analysis and Outlook

Current State: The market is in a phase of supply-demand tug-of-war. Upstream suppliers, driven by cost pressures, are determined to maintain firm prices, while downstream buyers remain cautious, leading to limited transaction volumes.

Price Trend: Magnesium prices are oscillating within a narrow range around 17,000 RMB/ton, with no significant short-term fluctuations expected.

Future Outlook: Prices are likely to remain volatile within the current range due to the ongoing balance between cost-driven price support and weak demand. Continued increases in raw material costs or a recovery in demand could further influence price movements.

Conclusion

This week, the magnesium ingot market experienced minor fluctuations driven by the interplay of rising production costs and subdued demand, ultimately stabilizing. Close monitoring of raw material price trends and downstream demand changes will be crucial to assess whether magnesium prices will continue to oscillate within the current range or see new developments.

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