Price trend
According to the monitoring of the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi region stopped falling this week (3.22-3.26), with an average market price of 15,966 RMB/ton at the beginning of the week and 15,825 RMB/ton at the end of the week, a decrease of 0.89%.
Analysis review
Supply and demand side
Magnesium prices saw a slight correction in the last week of March. As of March 26th, the inventory pressure of factories was at a relatively low level, but the accounting results of overall operating conditions still showed significant challenges. Supported by cost factors, factories had a strong willingness to maintain price stability. Most factories are still in the stage of reducing production.
As of March 26th, there was no significant sign of market demand recovery, and there was no major positive news to boost market confidence. Therefore, it is expected that the magnesium market will still face considerable operational pressure in the short term. Downstream users were only satisfied with maintaining basic procurement needs, and the number of new orders wass relatively limited. In this context, some manufacturers chose to slightly lower their prices to cope with market changes, while others insisted on maintaining prices unchanged, resulting in low overall transaction activity in the market.
Raw material side
The price of Fugu 75 ferrosilicon remained stable compared to the middle of last week. The silicon iron market was temporarily in a stable state, with futures prices fluctuating upwards and then falling back. The spot market was slightly weak but overall stable in a stalemate. In the Fugu semi-coke market, the semi-coke prices have shown a weak trend, and companies have successively implemented price reduction measures, resulting in a slight decrease in quotations.
Market outlook
In summary, downstream industries had weak demand, mainly focusing on purchasing to meet basic needs. Market inquiries and transaction activity have decreased, and the transaction atmosphere appeared relatively quiet. It is expected that the adjustment of magnesium prices within the range will not be significant int the short term.
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