Price trend

According to the Commodity Market Analysis System of SunSirs, as of the 17th, the average price of domestic magnesium ingot market was 20,866.67 RMB/ton, a decrease of 2.63% compared to the beginning of the month. This week, the price of magnesium ingots showed a first decline and then a stable operation. At the beginning of the week, some factories lowered prices to ship due to weak downstream demand and the fermenting news of factory resumption in the Fugu region; In the later part of the week, magnesium prices approached the cost line and factory quotations began to stabilize.

Analysis review

In terms of supply and demand

In terms of supply, there was news of a magnesium factory resuming production at the beginning of the week. It is understood that a Fugu magnesium ingot manufacturer with a daily output of 80 tons had officially started production, and the price of magnesium ingots was constantly decreasing. Due to approaching the cost line, profit margins continued to compress, and the possibility of manufacturers continuing to lower prices decreased. The downstream demand clock had not shown a significant improvement, and the supply and demand pattern was difficult to make significant changes. The magnesium ingot market continued to be under pressure.

In terms of raw materials

This week, the spot market for ferrosilicon was mainly operating steadily, with quotes in the Ningxia region around 6,750-6,900 RMB/ton, with an average market price of 6,875 RMB/ton. The national semi-coke market was temporarily stable in operation, and coal prices continued to rise, supporting the cost of semi-coke enterprises. Some companies' shipment situation had improved compared to the previous period, and there was a small release of inventory. Affected by this, some companies raised the price of coke by 30 RMB/ton, and the short-term price of semi-coke will be firm.

Market outlook

The main production area of magnesium ingots is about to resume production, and the output will be further released. However, the demand side was mainly based on on-demand procurement, and more cautiously follow-up is needed. The contradiction between supply and demand in the magnesium market continued. However, considering that magnesium prices had recently approached the cost line and manufacturers had limited room for price concessions, it is expected that the magnesium market will mainly operate in a weak and stable manner in the short term.

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