Price trend

According to the monitoring of SunSirs, as of the 22nd, the average price of magnesium ingots in the domestic market was 25,666.67 RMB/ton, a decrease of 4.94% on a weekly basis. This week, the price of magnesium ingot market was slightly lowered, downstream users were not willing to purchase, magnesium factories could not support the price, and the phenomenon of selling at low prices began to increase.

Analysis review

In terms of supply and demand

On the factory side, the number of magnesium factories shutting down this week increased. Due to the difficulty in improving downstream demand, it was difficult for manufacturers to raise prices. Although the operating rate of the magnesium ingot market had decreased, the spot inventory in the market was relatively abundant, and downstream purchases were cautious and there was a clear emotion to suppress the prices.

In terms of raw materials

The average market price of ferrosilicon in the Ningxia region was 7,182.86 RMB/ton. Stimulated by the improvement in sentiment towards ferrous metals and the news of the shutdown of ferrosilicon manufacturer Ruizilian, the spot price was raised by about 50 RMB/ton. The market prices of semi-coke and dolomite were stable, and there was no obvious fluctuation for the time being.

Market outlook

Overall, due to the shutdown of furnace type rectification in semi-coke enterprises, most magnesium factories were reluctant to sell. However, weak downstream demand and cold transactions dampened the confidence of manufacturers and forced them to lower their prices. Analysts from SunSirs believe that the magnesium market will operate in a weaker and volatile manner in the short term, focusing on downstream procurement and the shutdown of magnesium factories.

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