Price trend

According to the monitoring of SunSirs, as of the 21st, the average price of domestic magnesium ingot market was 21,000 RMB/ton, a decrease of 0.32% on a weekly basis. At the beginning of the week, the magnesium ingot market was running smoothly, and magnesium factories were cautious in their quotations. Some manufacturers that had stopped production temporarily did not ship, and the market followed suit. On Wednesday, there was an outflow of low-priced goods in the market, with a slight decline in magnesium ingots. Combined with the lack of improvement in demand, magnesium prices remained weak and stable in the middle and later stages of the week.

Analysis review

In terms of supply and demand

In terms of factories, some factories had a strong willingness to increase prices due to low inventory pressure and recent instability in coal prices. Some small factories chose to ship according to market conditions. In terms of demand, July is the traditional off-season, with foreign markets entering the summer break, resulting in a lackluster performance in the overseas market; Due to last week's centralized delivery of downstream orders in China, the price of magnesium rose to the level of 21,000 RMB/ton, downstream inquiries decreased and market trading was average.

In terms of raw materials

The price of ferrosilicon was stable and slightly weaker, with a mainstream quotation of 6,728.57 RMB/ton in Ningxia. Due to poor demand, it may continue to be weak and stable in the future. The coal price had slightly increased, and the pressure on the cost of semi-coke increased. As of July 21, the semi-coke market was operating stably, Shenmulan semi-coke small material was 970-1,050 RMB/ton, and the overall supply level was stable. Overall, the cost of magnesium ingots remained high.

Market outlook

Overall, supported by the cost side and due to inventory consumption after production stoppage and maintenance, magnesium factories had a clear mentality of stabilizing prices. However, in the traditional off-season, the magnesium market had weak actual orders and overseas orders, and downstream demand was not optimistic. It is expected that the magnesium ingot market will maintain a weak and stable operation in the short term, and it is necessary to continue to pay attention to downstream demand and manufacturer shipments.

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