According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province continues to decline, with an average market price of 16550 yuan/ton at the end of the month and 16970 yuan/ton at the beginning of the month, a decrease of 2.50%.
This month’s market analysis
Magnesium prices showed a continuous downward trend in April, with prices stabilizing at 16550 yuan/ton from mid month to the end of the month without any significant rebound, indicating a loose supply-demand relationship in the market.
Supply and demand side
On the supply side, the magnesium industry is currently showing a tight supply-demand balance, with the output and inventory of major production enterprises operating in a low range. Top manufacturers maintain market bargaining power through price strategies. However, it should be noted that as some suspended production enterprises in the main production areas accelerate their resumption of work and production, it is expected that new production capacity will be released before the end of this month, and the overall operating rate of the industry will show a stepped upward trend.
On the demand side, after completing the phased centralized warehousing, the market digestion pace has significantly slowed down. At the same time, overseas orders are about to enter a centralized delivery cycle, but the momentum released by terminal demand is still insufficient. Downstream buyers are constrained by market wait-and-see sentiment and generally adopt a “sales based procurement” strategy, executing procurement plans only for rigid orders. In the international market, overseas buyers have lowered prices, resulting in a significant increase in the difficulty of landing export orders and continued pressure on market transaction activity.
In terms of raw materials
In April, the price of ferrosilicon was dragged down by the manganese silicon market (the average price of silicon and manganese in Ningxia fell by 4.04%), easing cost pressures and passively expanding profit margins for magnesium plants, stimulating production enthusiasm. The resumption of ferrosilicon production capacity in Inner Mongolia and other regions, coupled with loose supply of raw materials, further weakens the bottom support of magnesium prices.
The current situation of stable price operation in the Lantan market. Most production enterprises have inventory at a median level, and with the expectation of cost support, their willingness to raise prices has increased, maintaining a dynamic balance between market supply and demand.
Future forecast
The support on the raw material side has weakened. In terms of supply and demand, an increase in supply and a decrease in demand have led to a decline in magnesium prices. In the short term, magnesium prices may continue to fluctuate weakly.
| http://www.polyvinylalcohols.com |