Price trend:

According to the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province was weak and stable last week (November 17-21). The average market price was 16,125 RMB/ton, and the price remained stable at a low level.

Market Analysis

Looking back at last week's market performance, the overall market trend remained largely unchanged, with prices generally stable. However, due to a significant increase in market supply last month coupled with lackluster overall demand, magnesium prices faced downward pressure and were temporarily trading near their annual lows.

On the supply side, major factories were still holding firm on the 16,000 RMB/ton price line, unwilling to lower prices further to prevent them from falling below the cost line. Refinery production remained stable, with a slight increase in output, and shipments in the first half of the week were basically in line with market conditions. However, towards the end of the week, influenced by rising coal prices, refineries' willingness to maintain prices strengthened again.

On the demand side, downstream enterprises were showing steady growth in demand. However, midstream alloy processing enterprises were facing persistently high aluminum prices, leading to high production costs and hindering their production pace from keeping up with the demand in both upstream and downstream markets. Influenced by the consumer psychology of "buying when prices are rising and not when they are falling," customers' purchasing intentions remained weak, with only small-scale replenishment of essential goods when prices were low. Most enterprises with demand were choosing to wait and see, hoping for a more suitable opportunity.

On the raw material side: Coal prices showed a further significant upward trend, while semi-coke prices remained largely stable, and ferrosilicon prices also remained unchanged. Overall, costs rose again.

Market Forecast:

Last week, the market remained relatively stable amidst overall fluctuations, although rising coal prices added uncertainty. Specifically, upstream costs increased by several hundred yuan, while downstream buyers were not very receptive to price increases. The bargaining power between upstream and downstream players is expected to intensify last weekend and into next week. However, supported by raw material costs, the room for price declines is relatively limited. Overall, the magnesium market is expected to continue its weak and stable consolidation trend in the near term, with prices fluctuating narrowly within the current price range.

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