SunSir: Orders Increased, Magnesium Factories had a Strong Mentality of Favoring Prices (July 10-17)

Price trend

According to the monitoring of SunSirs, as of the 17th, the average price of magnesium ingots in the domestic market was 21,066.67 RMB/ton, with a weekly increase of 1.12%. This week, the magnesium ingot market was operating steadily with a stronger trend. At the beginning of the week, the market was relatively stable. Starting from Tuesday, some downstream users followed up on procurement, and transactions improved. Magnesium factories adjusted their prices accordingly, and by Friday, the mainstream prices remained stable at 20,900-21,100 RMB/ton.

Analysis review

In terms of supply and demand

In terms of factories, some magnesium factories were still in the shutdown stage and undergoing summer maintenance. There was not much pressure on shipments and there was a strong mentality of price support. In terms of demand, the downstream procurement situation had improved this week, with an increase in inbound procurement and an increase in order volume. The price of magnesium ingots had slightly increased.

In terms of raw materials

The price of semi-coke was temporarily stable, and the manufacturer's shipment was stable, with no price adjustment for the time being. The prices of medium and small materials, as well as coke flour, were basically stable. The price of coal had slightly increased. The price of ferrosilicon was firstly high and then low and was weak and stable, with a mainstream quotation of 6,774.29 RMB/ton in Ningxia. The market transaction situation had not significantly improved, and it is expected that the price of ferrosilicon will be weak, stable and fluctuating weakly in the short term.

Market outlook

Overall, due to the lack of sustained order support for magnesium ingots, the momentum for magnesium prices to continue to rise is not strong. However, the operating rate of magnesium plants has decreased, and there has been little recent shipping pressure, leading to increased sentiment of price support and reluctance to sell. It is expected that the price of magnesium ingots will continue to maintain a stable trend in the short term.

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