SunSirs: Demand Had Not Improved, and Magnesium Price Had Stepped Down

Price trend

According to the monitoring of SunSirs, as of the 13th, the average price of domestic magnesium ingot market was 20,900 RMB/ton, down 0.79% weekly. The domestic magnesium ingot market showed a downward trend. Affected by the continued weakness of the downstream, the market trading atmosphere was depressed, and the magnesium price had stepped down. The price of magnesium ingot had been stable at 20,800-20,900 RMB/ton in the past three days, and the magnesium factory was no longer profitable. It was difficult to reduce the price again. The manufacturer had a strong desire to stabilize the price, but the overall demand performance was still poor

Analysis review

Demand

After the year, the downstream demand for magnesium ingots continued to be sluggish and did not improve. Downstream enterprises had few inquiries and poor purchasing enthusiasm. Even though the manufacturers continued to reduce prices, the actual transaction situation had not improved, and the market was filled with pessimism.

Raw materials

The average market price of ferrosilicon in Ningxia was around 7,700-7,800 RMB/ton. In March, the bidding price of ferrosilicon of Hebei Iron and Steel Group was 8,150 RMB/ton, down 280 RMB/ton from the previous month. The transaction activity of the demand-side ferrosilicon market was relatively low, and the number of enterprises that cut production or stopped production on the supply side was increasing and the output was decreasing. It is expected that in the short term, the domestic spot market of ferrosilicon may be dominated by narrow volatility.

In Fugu market, the production of semi-coke was stable and weak. Due to the recent resumption of production, some enterprises had made new adjustments to the price of semi-coke, reducing the ex-factory price of semi-coke by 210-270 RMB/ton.

Factory

As of the 13th, the price of magnesium had been the same as that of August 2021. Under the market pattern of oversupply, the quotation of magnesium ingots had been going down all the way. The cost of magnesium plants had been inverted, and the quotation of manufacturers had stabilized for a time.

Market outlook

In general, the weakening of magnesium ingots was mainly caused by the continued downturn in market demand. The buyers were wait-and-see, the sellers were forced to lower their prices, and the market lacks the support of good news.

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