SunSirs: Magnesium Prices Fluctuated Downward

Market Trends:

According to monitoring by the SunSirs Commodity Market Analysis System, the magnesium ingot market in the Shaanxi region experienced a decline last week (April 13–17). The average market price stood at 17,350 RMB/ton at the beginning of the week and 17,100 RMB/ton by the end of the week, marking a decrease of 1.44%.

Fundamental Analysis:

Supply and Demand

On the supply side, as a major production hub, Shaanxi has maintained high operating rates among its enterprises, leading to a continuous accumulation of inventories. On the demand side, the market is currently in its traditional off-season; downstream sectors—such as automotive and 3C electronics—are exhibiting subdued purchasing interest, largely adopting a strategy of placing small, on-demand orders for replenishment, resulting in generally sluggish market trading. Concurrently, export orders have shown no significant improvement, further eroding the support that market demand provides for magnesium prices.

Raw Materials

Recently, ferrosilicon prices have experienced a slight decline, while dolomite prices have remained stable; this has resulted in a modest reduction in the overall smelting costs for magnesium. This reduction in costs has further eroded the underlying support for magnesium prices, creating room for a downward correction.

Market outlook

Magnesium prices are expected to maintain a weak, volatile downward trend over the coming week. In the short term, there is little likelihood of a significant rebound in prices. A minor technical correction could potentially be triggered by sporadic restocking activities among downstream users; however, the extent of this rebound is not expected to exceed 17,250 RMB/ton. Going forward, market observers should pay close attention to changes in operating rates among producers in key production regions, as well as the timing of concentrated restocking efforts by downstream sectors, as these factors will exert a significant influence on the trajectory of magnesium prices.

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