SunSirs: Magnesium Prices Bottomed Out and Rebounded Slightly Last Week (December 15-19)

Price trend:

According to the commodity price analysis system of SunSirs: Last week (December 15-19), the magnesium ingot market in Shaanxi province stopped falling and rebounded. The average market price at the beginning of the week was 15,550 RMB/ton, and the average market price at the end of the week was 15,650 RMB/ton, an increase of 0.64%.

Last week, the magnesium ingot market generally showed signs of stabilizing at the bottom. It was difficult to find sources of supply priced below 15,600 RMB/ton. Both buyers and sellers were in a stalemate at the current price level, and the market situation did not show any significant changes.

Market Analysis

On the supply side, factories were maintaining a firm stance on pricing. It is understood that the market prices from various factories were largely consistent, showing a strong tendency to maintain prices, with no instances of voluntary price reductions or discounts. Most factories had already shipped a considerable amount of product in the previous period and temporarily had no pressure to release inventory. Furthermore, given that magnesium prices were at a low level, having reached the cost line, factories were unwilling to further lower their prices, resulting in a strong overall atmosphere of price stability in the market.

Regarding demand, downstream customers and intermediaries were still maintaining a cautious wait-and-see attitude, with only a few users with urgent needs making small replenishment purchases. The overall market showed weak demand and had not yet seen any substantial improvement.

Raw Materials: Coal prices showed a slight upward trend, while the prices of semi-coke and ferrosilicon remained stable. Overall costs remained largely unchanged.

Market Forecast:

The market has been under continuous pressure recently, only showing signs of recovery in the latter half of last week. Against the backdrop of a slight increase in demand and order volume, magnesium smelting companies will continue to experience divergent price trends. It is expected that the market will gradually recover with minor fluctuations in the coming period.

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