Price Trends

According to monitoring by the SunSirs Commodity Market Analysis System, the magnesium ingot market in the Shaanxi region has declined. As of May 29, the average market price stood at 16,600 RMB/ton; compared to the average price of 16,750 RMB/ton at the beginning of the month, this represents a decrease of 0.90%.

Market analysis

In May, domestic magnesium prices generally exhibited a volatile trend characterized by an initial decline followed by a rebound, peaking before retreating. Prices retreated from high levels during the first ten days of the month and continued to plumb new lows in the middle ten days; however, driven by a confluence of factors, they staged a rapid rebound in the last ten days, only to come under renewed pressure and undergo a correction at month-end. Overall, the magnitude of these price fluctuations was significant.

Supply and Demand Dynamics

In early May, magnesium prices faced downward pressure, driven primarily by weak downstream demand and persistently high operating rates on the supply side. Amidst mounting inventory pressures, producers offered price concessions to facilitate sales, leading to a sustained weakening of prices. By mid-May, market sentiment turned bearish, and prices briefly dipped to a cyclical low. In late May, however, some producers demonstrated a stronger resolve to defend price levels; this coincided with temporary maintenance shutdowns that resulted in a marginal contraction of supply. Simultaneously, downstream enterprises seized the opportunity to restock at lower price points, triggering a rapid rebound in prices. Nevertheless, toward the end of the month, downstream purchasing behavior returned to rationality—characterized by a lack of sustained demand—and this, coupled with the release of some lower-priced inventory into the market, caused prices to retreat once again.

Market outlook

As of May 29, the short-term rebound momentum in magnesium prices has begun to wane, while the medium-term supply-demand landscape remains relatively loose. Barring any new bullish catalysts, prices are expected to continue fluctuating with a downward bias. It is projected that magnesium prices will primarily trade within the range of 16,400–17,000 RMB/ton, exhibiting a volatile pattern characterized by a rising floor but limited upward momentum.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.