SunSirs: Magnesium Prices Slightly Decreased This Week

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province fell this week (12.22-12.26), with an average market price of 16,300 RMB/ton at the beginning of the week and 16.266 RMB/ton at the end of the week, a decrease of 0.20%.

Analysis review

This week, the magnesium market had slightly lowered its prices, with the lowest price remaining stable at 16,000 RMB/ton. Due to the upcoming Christmas and New Year holidays, there was less demand from abroad, and domestic procurement remained essential. The overall magnesium market was relatively flat, with mostly wait-and-see measures.

Supply and demand side

This week, magnesium prices were still under pressure due to the approaching of two major holidays abroad, reduced demand, and the unchanged pattern of more supply and less demand. However, the overall cost of the upstream magnesium plant was already in a state of loss, and there was a strong willingness to raise prices due to cost support.

The delivery of 75 ferrosilicon at the raw material end remained stable. The spot market was temporarily stable, and futures bottomed out and rebounded, but the demand side support was limited, and the overall supply and demand pattern had not changed. The factory's willingness to lower prices was not high, and it is expected that the short-term ferrosilicon market will operate weakly and steadily.

Market outlook

The magnesium market was still under upward pressure, but the downward space continued to compress, and in the short term, the upstream and downstream of the market were in a dilemma of rising and falling. Maintain a slight fluctuation and run steadily. Magnesium prices fluctuate narrowly within the range.

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