According to the Commodity Market Analysis System of SunSirs, as of the 13th, the average price of magnesium ingots in the domestic market was 21,266.67 RMB/ton, an increase of 0.62% compared to the beginning of the month. In the middle of the week, some downstream enterprises made bargain hunting purchases, and market transactions improved. The price of magnesium ingots increased by about 300-400 RMB/ton. Subsequently, news of the resumption of production by factories in the main production area fermented, and market transactions gradually slowed down. There were signs of another decrease in magnesium prices.
Analysis review
In terms of supply and demand
In terms of supply, due to the low prices of magnesium ingots in the early stage, the magnesium factory's recent quotations had been relatively firm, which made it difficult to sell at discounted prices. In terms of demand, downstream users' speculative purchases increased during the week, but the news of resumption of production in the main production area affected the downstream and began to wait and see, resulting in a decrease in overall demand.
In terms of raw materials
This week, the ferrosilicon market fluctuated upwards, with spot prices increasing by 50-100 RMB/ton. The market quotation in Ningxia was around 6,750-6,900 RMB/ton, with an average market price of 6,875 RMB/ton, up 0.40%. This week, the overall national semi-coke market was temporarily stable. At the beginning of the week, a few companies had difficulty shipping coke, with prices dropping by 20-40 RMB/ton. In the second half of the week, as raw material prices rose, some companies saw coke prices rise by 30 RMB/ton.
Market outlook
Due to the expected impact of factory resumption in the early stage, magnesium prices were at a low level, and manufacturers had highlighted their strong prices. With the support of production costs, there was limited room for magnesium price reduction. However, due to the overall weak demand and the lack of upward mobility in magnesium prices, it is expected that the magnesium ingot market may operate weakly and steadily in the short term.
