Price trend

According to the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province saw a slight decline last week (November 24-28), with the average market price at 16,100 RMB/ton, a decrease of 0.16%.

Market Analysis

The magnesium ingot market remained relatively firm and stable in the first half of last week, but weakened slightly towards the end of the week. Market feedback indicated that this morning, major factories in the Fugu area adjusted their prices to 16,000-16,100 RMB/ton (including tax). Meanwhile, markets in other regions also showed a weak but stable trend.

On the supply side, at the beginning of the week, factories set their prices at 16,100 RMB/ton to stabilize prices. However, in the middle and later part of the week, due to persistently weak demand and reduced market activity, many magnesium companies flexibly adjusted their sales strategies according to the market situation, slightly lowering their prices to 16,000 RMB/ton. Meanwhile, given the pressure on costs, few lower prices appeared in the market.

On the demand side, overall transaction volume in the downstream market was insufficient, and the market was characterized by a strong wait-and-see attitude. As of November 28, the supply-demand relationship had not improved significantly, thus putting some pressure on the magnesium market. Given that magnesium prices had fallen to near the break-even point for factories, it is expected that further price declines will be more difficult.

Raw material side: The prices of coal, semi-coke, and ferrosilicon all remained stable, and the overall cost remained basically unchanged..

Market Forecast:

Analysis of the supply and demand situation showed no significant signs of improvement on the demand side. Given the continued loose supply-demand relationship, a rebound in magnesium prices faced considerable difficulty. However, given that magnesium prices had already fallen to their lowest level this year, and with cost factors supporting the market, it will be more difficult for magnesium prices to fall further. The magnesium ingot market is expected to remain weak and stable, consolidating within a narrow range.

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