Price trend

According to the data monitoring of SunSirs, as of November 4, the average price of domestic magnesium market was 24,566.67 RMB/ton, down 1.99% from the beginning of the month. This week, the domestic magnesium metal market showed a trend of first holding down and then rising.

Analysis review

At the beginning of November, the transaction of magnesium ingot market was weak, and the price including tax reached 24,100-24,200 RMB/ton. At the same time, the price of raw materials was loose, lacking cost support. By Thursday, with the deep correction of magnesium price, the price was close to the buyer's heart level, and some downstream customers were bargain hunting. In addition, the price of ferrosilicon futures rebounded at the bottom, so the factory's willingness to stabilize the price gradually increased.

Raw materials

The average market price of ferrosilicon in Ningxia was 8064.29 RMB/ton, the market price of ferrosilicon was loose, the price of semi-coke was stable and weak, and the cost support of raw material weakened. Previously, the enthusiasm of the semi-coke news faded, and the market returned to the supply and demand side. The price of raw coal remained stable at a high level, and the shipment of main production areas was not smooth under the influence of public health events.

Downstream

The price of magnesium powder and magnesium alloy in the downstream followed the trend of magnesium ingot from weak to stable, and the procurement of magnesium ingot remained cautious. The terminal automobile industry had relatively good demand for magnesium alloys, but it was difficult to support magnesium ingots under difficult circumstances.

Market outlook

To sum up, under the current low magnesium price, some downstream users enter the market for replenishment, but the overall downstream demand is weak, which is difficult to form lasting support for the magnesium price. It is expected that the magnesium price will operate stably in the short term

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