Price trend

According to the Commodity Market Analysis System of SunSirs, as of the 16th, the average market price of domestic magnesium ingot was 23,933.33 RMB/ton, a decrease of 3.62% compared to the beginning of the month. This week, the price of magnesium ingots was weakened and lowered. The market was relatively flat after the holiday, and there was less centralized inventory in the downstream. Additionally, there was a slight increase in factory inventory after the holiday, and some manufacturers were interested in giving up profits for shipment.

In terms of supply and demand

In terms of supply, there had been a slight increase in factory inventory after the holiday. Some factories were willing to sell at a lower price, while most factories did not have significant pressure to sell. The space for selling at a lower price was limited, and the willingness to sell at a lower price was not strong. In terms of demand, downstream were mostly based on inquiries, with fewer actual transactions.

In terms of raw materials

Due to the lack of market confidence caused by the decline in futures trading, the price of ferrosilicon had dropped. This week, the price of ferrosilicon in the Ningxia region was around 6,800-7,000 RMB/ton, with an average market price of 6,914 RMB/ton, a decrease of 3.59%. In the absence of favorable market support, the spot market for ferrosilicon may operate in a weak position.

This week, the national semi-coke market temporarily stabilized after rising. On October 11th, downstream mainstream calcium carbide enterprises raised the purchase price of semi-coke by 79.1-80 RMB/ton, and semi-coke enterprises gradually raised prices ranging from 30-80 RMB/ton, with the first round of price increases landing. The mainstream price of small and medium-sized materials in the Shenmu market was 1,330-1,550 RMB/ton.

Market outlook

Overall, downstream demand was sluggish this week, and the cost support for raw material ferrosilicon had weakened, leading to a slight decline in the magnesium ingot market. The willingness of factories to give up profits for shipment increased compared to before, but the production of magnesium ingots in the main production area remained low. Most factories had little pressure on shipment, and it is expected that the space for magnesium ingot prices to continue to decline is limited, and it will operate in a weak and steady state trend in the short term.

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