Price trend

According to the monitoring of SunSirs commodity market analysis system: the magnesium ingot market in Shaanxi Province fell this week (9.19-9.24). The average market price was 17,025 RMB/ton at the beginning of the week and 17,000 RMB/ton at the weekend, a decrease of 0.15%.

Analysis review

The magnesium ingot market saw fluctuations this week, with prices declining compared to the middle of last week. Affected by fine-tuning supply and demand and market sentiment, actual transaction prices shifted slightly downward, and the overall market remained stable but weak.

Supply and Demand

On the supply side, as of September 24, the market environment presented a stalemate between supply and demand. While occasional low-priced supplies entered the market, sparking brief concerns, overall, the market was not experiencing a significant supply shortage.

In terms of demand, the market mainly presented the characteristics of rigid demand to replenish inventory, and the corporate side showed a clear wait-and-see attitude. Not only had the frequency of active inquiries decreased significantly, but the actual purchase order cycle had also been lengthened, and the overall market transaction activity continued to weaken.

Raw Materials

Compared to last week, ferrosilicon prices saw a slight increase. As of September 24, the ferrosilicon market was characterized by a mix of bullish and bearish factors, operating generally smoothly, with prices fluctuating within a range. The lignite market initially showed strength before temporarily stabilizing. On the supply side, a slight decline in production capacity and low inventories had led to a tight supply. Meanwhile, robust demand had provided strong support, keeping prices for small and medium-sized materials and coke firm. The coal market's upward trend had weakened due to weakening downstream demand, leading to slight price reductions at some mines.

Market outlook

As of September 24, the magnesium market was caught in a tug-of-war between cost support and weak demand. High upstream raw material costs were providing strong support for magnesium prices, but persistently sluggish demand from downstream industries was restricting upward price movement, leaving magnesium prices caught in a dilemma between rising and falling prices. As a result, overall market sentiment was becoming increasingly cautious, with both buyers and sellers adopting a cautious approach, and actual transaction volume remained low.

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