According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province fell this week (8.9-8.16), with an average market price of 18033 yuan/ton at the beginning of the week and 17933 yuan/ton at the end of the week, a weekly decline of 0.55%.
This week’s market analysis
This week, the price of magnesium ingots reached a near May low, stabilizing and slightly weakening. The price has fallen to near the cost line, and manufacturers have a pro price mentality. Some magnesium factories have slightly reduced prices to promote transactions.
Supply and demand side
Insufficient driving force on the demand side, coupled with weak raw material prices, does not provide favorable support for magnesium prices. Confidence in the future market is clearly lacking, and magnesium prices continue to be under pressure.
In terms of raw materials
The price of Fugu 75 silicon iron has fallen compared to the middle of last week. Recently, the futures of ferrosilicon have fluctuated downwards, and the spot market has followed suit with a weak decline. Market transactions are light, and there is a downward pressure on downstream purchases. The actual transaction price of ferrosilicon has slightly loosened, and it is expected that the short-term ferrosilicon market may remain stagnant, with little possibility of a significant price adjustment.
The price of orchid charcoal in Fugu area remains stable, and mainstream manufacturers’ quotations have remained basically unchanged. It is expected that orchid charcoal will not rise in the short term and will continue to maintain a weak and stable trend.
Future forecast
At present, the downstream demand for magnesium ingots is poor, and only essential procurement is maintained downstream, resulting in a continued stalemate in market supply and demand. The short-term supply and demand pattern of the magnesium market is unlikely to change, and it is expected that the magnesium market will continue to maintain a weak and stable trend, with prices fluctuating narrowly in the low range.
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