According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province has fallen and fluctuated overall, with an average market price of 16175 yuan/ton at the end of the month and 16925 yuan/ton at the beginning of the month, a monthly decline of 4.43%.
This month’s market analysis
Magnesium prices sharply decreased in the first half of June, and then fluctuated and bottomed out in the second half. In the early stage, there was a continuous pullback, while in the later stage, there was a strong rebound after hitting the bottom. During this process, both the supply and demand sides engage in a game around prices, and the level of market activity gradually increases.
Supply and demand side
On the supply side, the operating rate of original magnesium production enterprises is still at a low level, and companies generally have a strong willingness to raise prices. Some companies have suspended quotations and shipments in the low price range.
On the demand side, when prices drop to a low level, downstream purchasing volume significantly increases. After the price began to rise, the willingness of downstream enterprises to replenish also further increased. After the price increase, the wait-and-see atmosphere on the application side remains strong, and downstream buyers mostly adhere to the strategy of essential procurement, maintaining low inventory levels. Such a cyclical supply-demand game has led to a bottoming out of magnesium prices.
In terms of raw materials
In terms of raw materials, there was a slight downward trend in coal prices, orchid charcoal prices, and silicon iron prices at the beginning of the month. The subsequent coal price correction and continuous rise provide support for magnesium prices.
Future forecast
In the short term, the trend of magnesium ingots is expected to continue the bottom game state, with a stable and strengthening operating trend. On the supply side, low inventory and rigid cost support, along with upstream raw materials, have provided a solid bottom support for magnesium ingot prices.