Price trend:

According to the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province stopped falling and rebounded last week (November 3-7). The average market price at the beginning of the week was 16,350 RMB/ton, and the average market price at the end of the week was 16,450 RMB/ton, an increase of 0.61%.

Analysis review

Last week, the magnesium market experienced a decline followed by a rise. At the beginning of the week, the market was weak and stable, with a relatively calm atmosphere and magnesium prices remaining largely stable. Inquiries and purchases were also limited. Towards the end of the week, prices were raised, with factories further increasing their quotes to the range of 16,400 to 16,500 RMB/ton.

Supply and demand side

On the supply and demand side, factories were inclined to stabilize prices. This inclination stemed in part from the recent slight increase in raw material coal prices. When prices were low, factories were unwilling to close deals at low prices, so market quotations gradually increased in stages towards the end of the week. However, according to feedback from the downstream market, customers were not very accepting of high-priced products.

Raw material side

Coal prices had risen sharply and showed signs of further increases, while semi-coke prices had not yet followed suit, and ferrosilicon prices had remained relatively stable. Overall, costs had risen significantly.

Market Forecast:

Last week, the market showed clear signs of bottoming out, with coal prices unexpectedly rising during the consolidation phase. While magnesium prices also rose accordingly, the increase was less than the rise in costs. Given the anticipated increases in both coal and ferrosilicon prices, magnesium prices are expected to see further gains later.

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