Overview of magnesium metal price trends

According to the commodity market analysis system of SunSirs: This week (February 12-25), the magnesium ingot market in Shaanxi Province rose. The average market price at the beginning of the week was 16,450 RMB/ton, and the average market price at the end of the week was 16,550 RMB/ton, an increase of 0.61%.

Compared to before the holiday, the price of magnesium ingots in Fugu County showed a slight upward trend. After the holiday, the magnesium market as a whole exhibited a pattern of "stable prices with a slight upward trend, but sluggish trading activity." Downstream enterprises resumed work at a relatively slow pace, and a strong wait-and-see attitude permeated the market. Although market inquiries increased, actual purchasing intentions remained weak, and there were no obvious signs of a recovery in end-user demand.

Supply side

Although inventory accumulated to some extent during the holiday, manufacturers were not keen to ship at low prices, and prices remained firm. Processing fees for some magnesium alloys also saw a slight increase.

Demand side:

Demand was in a state of "gradual recovery," with most companies focusing on digesting previous inventory. Inquiries and trading activity were relatively weak, and the game between supply and demand was at a stalemate. The magnesium market was temporarily maintaining a stable operating trend.

Cost Side:

While the price of 75% ferrosilicon in Fugu region remained stable compared to before the holiday, the overall market showed a weak trend after the holiday. The futures market fluctuated weakly, with prices falling to recent lows, which in turn led to a decline in spot prices. Fugu semi-coke prices are currently stable, however, the market faces downward pressure after the holiday. It is expected that the Fugu semi-coke market will continue its weaker trend in the short term, with prices likely to remain stable with a downward bias.

Comprehensive Analysis

Magnesium prices are expected to continue their range-bound, steadily upward trend in the short term. Going forward, the market will need to closely monitor supply and demand dynamics, the progress of downstream enterprises' resumption of production, and fluctuations in raw material prices.

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