According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province slightly declined this week (3.3-3.14), with an average market price of 15800 yuan/ton at the beginning of the week and 15766 yuan/ton at the end of the week, a decrease of 0.21%.
Supply and demand side
Due to the long-term phenomenon of cost inversion, multiple magnesium factories continue to face the dilemma of losses. As the weather gradually warms up after entering spring, magnesium factories have chosen to conduct equipment maintenance in advance and have taken measures to reduce or shut down production in order to alleviate operational pressure. At the same time, due to poor production and sales in the early stage, the inventory of magnesium factories is generally low, which has led to a significant reduction in magnesium supply in the market. However, despite the tight market supply, magnesium prices have not yet reached the cost line of magnesium plants. Therefore, magnesium plants have a strong willingness to raise prices and hope to improve their current loss situation by stabilizing or increasing magnesium prices.
demand side
The downstream demand is currently maintaining an overall stable trend. Downstream believes that magnesium prices are already low in the short term, so they are entering the market to replenish and actively reserve. In the process of gradually rising magnesium prices, active transactions have emerged in various price ranges, which not only reflects the market’s resilience in demand for magnesium, but also provides strong support for magnesium prices.
comprehensive analysis
In summary, magnesium prices have recently stopped falling and stabilized. Partial magnesium factories have stopped production for maintenance, reversing the situation of oversupply in the market. It is expected that magnesium prices will maintain a strong and stable operating trend in the coming period. With the further adjustment of market supply and demand, magnesium prices are expected to gradually rise.
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