Price trend

According to the commodity market analysis system of SunSirs: Last week (October 27-31), the magnesium ingot market in Shaanxi Province fell. The average market price at the beginning of the week was 16,375 RMB/ton, and the average market price at the end of the week was 16,325 RMB/ton, a decrease of 0.31%.

Analysis review 

The magnesium market showed a trend of first declining and then stabilizing, and then rebounding: In the early stage, the overall price of magnesium continued to decline. However, as the willingness of ordinary magnesium product manufacturers in Fugu area to further reduce prices gradually decreased, the market tended to stabilize in the later stage.

Supply and demand side

On the supply side, the domestic economic situation recently showed a steady improvement, with domestic demand generally remaining stable and rising, and market consumption vitality continuing to be released. However, affected by fluctuations in the international market and some uncertainties, export-oriented enterprises mostly adopted a cautious wait-and-see attitude last week, significantly reducing their procurement plans for raw materials and commodities, and awaiting further market clarity.

On the demand side, the supply of primary magnesium remained largely stable laslt week compared to the previous period. As of October 31, magnesium smelters' inventories remained at low levels, and companies were strongly inclined to maintain prices, with most choosing not to ship any products for the time being. However, as the end of the month approached, some companies, facing cash flow pressure, had made some small-scale shipments.

Raw Material Side

Coal prices showed a certain downward trend, semi-coke prices remained largely stable, and ferrosilicon prices saw a slight decrease, resulting in a corresponding reduction in overall costs.

Market outlook

Last week, the market witnessed intense competition between supply and demand. Upstream suppliers were strongly inclined to maintain prices, while downstream buyers had relatively low price expectations. Affected by the tight short-term cash flow of magnesium smelting companies, market prices declined to some extent. However, given the situation of costs exceeding supply, further price reductions face significant difficulties.

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