Price trend

According to the Commodity Market Analysis System of SunSirs, as of the 31st, the average price of magnesium ingots in the domestic market was 20,600 RMB/ton, a decrease of 1.12% compared to the previous week. This week, magnesium ingot prices had been weak and downward, due to the continued weak downstream demand, coupled with some factories resuming work and slightly increasing production, magnesium prices had been suppressed.

In terms of supply and demand

The supply and demand sides continued to engage in a game, with enterprises in the main production areas gradually resuming production and market supply continuously increasing. However, downstream demand had not improved, and domestic market transactions were sluggish. The foreign market had entered traditional holidays, resulting in a decrease in orders. In addition, due to the recent increase in sea freight rates, foreign orders had been reduced.

In terms of raw materials

This week, the market price of ferrosilicon in Ningxia was around 6,550-6,700 RMB/ton, with an average market price of 6,661.43 RMB/ton. The spot price of ferrosilicon was operating weakly. As of the 31st, there was sufficient inventory of ferrosilicon, and it was difficult to release it in the pre holiday end market. Steel mills still had the willingness to purchase at lower prices, and it is expected that the price of ferrosilicon may fluctuate weakly. The price of semi-coke remained stable, with Shenmu semi-coke small materials priced at around 1,080-1,160 RMB/ton. As of the 31st, semi-coke enterprises mainly consumed inventory while maintaining their own profits, and production often continued at low loads. It is expected that the short-term price will stabilize, and there is some cost support for magnesium plants.

Market outlook

The short-term supply of magnesium in the market is more than expected, and the overall market is not optimistic. However, the current magnesium price factory profits are close to the bottom, and there is limited room for further reduction in magnesium prices. It is expected that the price of magnesium ingots will remain stable.

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