SunSirs: Demand Continued to Be Sluggish and Magnesium Price Continued to Decline (December 9-16)
December 21 2022 10:27:06 SunSirs (John)
Price trend
According to the monitoring of SunSirs, as of the 19th, the average price in the domestic market was 22,333.33 RMB/tonn. The magnesium market was cold, and the price of magnesium ingots weakly declined. In case of rain, orders were scarce, and many factories' quotations were adjusted in a weak way. Some manufacturers said that with the support of raw coal and other cost prices, magnesium prices may fall to the bottom.
Analysis review
Raw materials
The average market price of ferrosilicon in Ningxia was 8,178.57 RMB/tonn, which was rising steadily. The steel bidding of January was launched in advance, the market demand was released, most suppliers supported prices, and the inventory resources were relatively limited. In the short term, the ferrosilicon market was operating steadily.
In terms of coal, the price of semi-coke in Fugu market was stable, the price of lump coal in some coal mines rose slightly, the production and sales of semi-coke were balanced, and the inventory was slowly digested.
Supply side
As the price of magnesium ingots continued to decline, the contradiction between supply and demand in the magnesium market became increasingly prominent. Some magnesium plants were forced to actively reduce production due to the tight capital chain and serious losses. Nitrogen had little impact on the current overall market pattern.
Market outlook
As a whole, the magnesium ingot market was in the downward channel, with unbalanced supply and demand, and a strong bearish sentiment in the market. Although cost support slowed down the decline of magnesium price, the overall situation was difficult to reverse. It is expected that the price of magnesium ingots will continue to decline in the short term.
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- 2024-01-04 SunSirs: Supply Exceeded Demand, and Magnesium Prices Continued to Be Weak (December 25-31)
- 2023-12-27 SunSirs: There Was No Significant Change in the Magnesium Market, Maintaining a Weak and Stable Trend (December 18-25)
- 2023-11-21 SunSirs: Affected by the News of Resuming Work One after Another, the Magnesium Market Was Operating to Be Weaker (November 13-17)
- 2023-11-14 SunSirs: Insufficient Demand Support, Magnesium Prices Fluctuated Narrowly (November 6-13)
- 2023-10-18 SunSirs: Manufacturers' Willingness to Give Up Profits Increased, and Magnesium Prices Slightly Decreased (October 9-16)
