Price trend
According to the commodity market analysis system of SunSirs: Last week (November 10-14), the magnesium ingot market in Shaanxi Province fell in stages. The average market price at the beginning of the week was 16,450, and the average market price at the end of the week was 16,125 RMB/ton, a drop of 1.98%.
Market quotations showed a gradual, step-like decline. At the beginning of the week, due to weak downstream demand, market quotations rebounded; this downward trend continued until Wednesday, and by the weekend, market prices had further adjusted to 16,100 RMB/ton, with relatively good transaction volume and some downstream purchase orders following suit.
Market Analysis
Supply and demand side
On the supply side, magnesium smelters initially had a strong willingness to maintain prices. However, with increasing cash flow pressure, some companies had to change their strategies and began to ship products according to market conditions. These companies mostly adopted flexible pricing methods to sell their products, especially when market demand was weak, and actively chose to lower prices to facilitate transactions.
On the demand side, downstream customers' overall purchasing intentions were relatively weak. However, by Thursday, market prices had dropped to lower levels, prompting some downstream customers to begin making purchases.
Raw material end
Coal prices continued to rise, while semi-coke prices remained relatively stable, and ferrosilicon prices also did not fluctuate, resulting in a further increase in overall costs.
Market Forecast:
In the near term, the overall magnesium ingot market is unlikely to see a significant boost, with prices likely to remain around the levels on November 14, maintaining a weak consolidation trend. Whether the market can stabilize and rebound will depend on close monitoring of downstream transaction conditions and changes in the raw material market.
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