Market analysis for this week

According to the Commodity Market Analysis System of the Business Society, as of the 13th, the average price of magnesium ingots in the domestic market was 21266.67 yuan/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 yuan/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.

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 have been relatively firm, which makes 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 silicon iron market fluctuated upwards, with spot prices increasing by 50-100 yuan/ton. The market quotation in Ningxia is around 6750-6900 yuan/ton, with an average market price of 6875 yuan/ton, up 0.40%. The overall stable operation of the national orchid charcoal market in Zhou Dynasty has been observed. At the beginning of the week, a few enterprises had poor coke surface shipments, with prices dropping by 20-40 yuan/ton. In the second half of the week, as raw material prices rose, some enterprises saw coke surface prices rise by 30 yuan/ton.

Future Market Forecast

Due to the expected impact of factory resumption in the early stage, magnesium prices are at a low level, and manufacturers have highlighted their strong prices. With the support of production costs, there is 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.