SunSirs: The Magnesium Market Ushered in a Purchasing Boom Before the Spring Festival, and the Price Gradually Rebounded (January 2-6)

Price trend

According to the monitoring of SunSirs, as of January 9, the average price of magnesium in the domestic market was 21,700 RMB/ton, unchanged from last week. After coming back from the New Year's Day, the market action was slow, and most magnesium plants did not guarantee prices to maintain the early market. Near Friday, the downstream concentrated procurement was advanced before the Spring Festival, and the quotation of some factories was slightly increased tentatively.

Analysis review

Factory

The price of magnesium ingot was at a low level, which led to production inversion and loss, and the factory was not willing to make profit-cutting. In addition, due to the weak market turnover in the early stage, some magnesium plants responded by reducing production, which reduced the supply of low-priced goods in the market.

Demand side

The overall transaction in magnesium market was weak, with rigid demand procurement as the main. In view of the approaching Spring Festival, some magnesium powder and magnesium alloy enterprises began to stock up for procurement, and the procurement demand was released in the second half of this week in advance, which provided some support for magnesium prices. Focus on downstream procurement demand before the festival. Overseas demand was flat, and under the influence of exchange rate, overseas traders were not willing to accept orders.

Raw materials

The average market price of ferrosilicon in Ningxia was 8,167.44 RMB/ton. The market demand for ferrosilicon was weak, and the price of ferrosilicon was expected to be weak and stable in the short term. The price of coke was stable and strong, the inventory was low, the supply was gradually tight, and the cost support of coke was strong.

Market outlook

In general, the factory was reluctant to sell and supported the price, the demand was supported by the stock, and the support of raw material cost was strengthened. It is expected that the price of magnesium may rise in the short term when it is stable.

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