Market analysis for this week
This week, the price of magnesium ingots first rose and then fell. In the early part of the week, factories had a strong willingness to raise prices due to cost support. Coupled with the rise in raw material silicon iron prices, the falling magnesium price formed support. At the end of the week, some magnesium factories have loosened their quotations due to low market transactions. According to the Commodity Market Analysis System of Business Society, as of May 24th, the average price of magnesium ingots in the domestic market was 18666.67 yuan/ton, with a week on week increase of 0.90%.
In terms of supply and demand
On the supply side, the factory quotation is relatively stable, with a clear attitude of price support. Currently, there have been no changes in production, and the magnesium factory is operating normally. Some factories have slightly adjusted their output. On the demand side, there has been no significant improvement in downstream demand, especially with low export order prices, which limits the upward trend of magnesium ingot prices.
In terms of raw materials
This week, the market quotation for ferrosilicon in Ningxia was between 6900-7100 yuan/ton, an increase of 0.47% compared to last week. This week, despite the tight supply of spot goods by enterprises, increased market demand, and some support from the cost side, the market for ferrosilicon has been relatively strong, and the market quotation is also relatively firm.
This week, the national blue charcoal market experienced a slight fluctuation. Except for a few companies that raised the price of blue charcoal by 10-20 yuan/ton based on their own sales situation, the prices of most other companies remained stable; Under the influence of environmental factors such as the first round of decline in coke, the price of blue coke in the Xinjiang market has slightly declined, ranging from 10-30 yuan/ton, and the overall market price has shown fluctuations. As of May 24th, the mainstream prices of small and medium-sized materials in the Shenmu market are 840-980 yuan/ton, and the coke surface is 610-680 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 900-1000 yuan/ton, and the coke surface is 665-700 yuan/ton.
Future Market Forecast
Overall, magnesium plants have been operating normally recently with sufficient supply, but the demand side has not shown significant growth, especially with the continuous rise in magnesium prices. Downstream transactions are not many, coupled with lower prices from overseas users and a lack of downstream demand support, resulting in poor upward momentum in magnesium prices. However, the price of raw materials such as ferrosilicon has risen, compressing the profit margins of magnesium factories. Based on cost considerations, manufacturers have no willingness to lower prices for shipment, and their quotations are relatively stable. It is expected that the metal magnesium market will operate steadily in the later stage.
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