SunSirs: Magnesium Market Turned from Weak to Strong, and Magnesium Prices Were Expected to Run Steadily after the Holiday (September 2-9)

Price trend

According to the data monitoring of SunSirs, as of the 9th, the average price of magnesium in the domestic market was 25,233.33 RMB/ton, down 4.18% from the beginning of the week. Magnesium prices have been in a slow downward trend since September. Before the festival, the magnesium market became active. Some replenishment orders were purchased in the market, and the price of magnesium ingots rebounded slightly.

Analysis review

Supply and demand

In terms of factories, since the high level correction of magnesium ingots at the beginning of the month, the price had dropped by about 1,500-2,000 RMB/ton, and the price of magnesium had returned to the middle level and magnesium plants were less willing to make further price concessions. In terms of demand, the market was relatively dull in the early stage, and the supply and demand sides were locked in a game. With the Mid-Autumn Festival holiday, downstream purchases increased, and foreign orders were released in a concentrated manner, and market confidence was restored.

Upstream and downstream

This week, the ferrosilicon market fluctuated, the spot market fluctuated weakly, the futures market rose at the end of the week, and the bidding price at the steel mill side was difficult to determine. The price of ferrosilicon will remain stable in the short term.

The coke market has been raised in the first round, down by 100-110 RMB/ton. In terms of coking enterprises, the operating rate this week was stable, because the recent downstream purchases were not active, and the inventory of some coking enterprises increased slightly. In the market outlook, SunSirs believes that the overall negative factors in the coke market are currently dominated, and the market has raised and lowered expectations again. Coke companies are currently holding a wait-and-see attitude. It is expected that the coke market may run weakly and steadily in the short term.

Market outlook

On the whole, the magnesium market ushered in a temporary demand release before the holiday, and the low price range of magnesium prices rose. However, given the overall weak demand side, there is little room for further recovery. Analysts of SunSirs believe that the magnesium market is expected to run steadily in the short term.

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