According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province fell this week (2.17-2.21), with an average market price of 16250 yuan/ton at the beginning of the week and 16083 yuan/ton at the end of the week, a decrease of 1.03%.

This week’s market analysis

The magnesium price remained stable in the first half of this week, while the rate of decline accelerated in the second half. The price trend of magnesium market continues to be weak, and multiple unfavorable factors are intertwined, leading to increased pressure on the market. Firstly, there has been no significant boost in downstream demand, coupled with a decline in coal prices, which has put downward pressure on magnesium prices. At the same time, the significant appreciation of the Chinese yuan against the US dollar has further compressed the export competitiveness of magnesium products. Without positive market news support, the bottom support of the magnesium market is gradually weakening, and magnesium prices have hit a new low in nearly three years, posing more severe challenges to factory operations.

Supply and demand side

This week, the magnesium market trading is still mainly focused on essential purchases. Users are cautious about future market trends and are not in a hurry to replenish inventory, so they are more cautious when placing orders.

The fierce bidding in domestic and international markets has put significant pressure on both upstream and downstream enterprises in the magnesium industry chain, and their survival situation is worrying. The analysis of supply and demand indicates that although the overall supply remains stable, there has been no significant improvement in demand, and the supply-demand pattern is relatively loose. In the short term, the magnesium market may continue to operate under pressure.

However, considering the worsening losses in the production of blue charcoal in the factory, the overall operating situation is difficult, and the cost support effect is gradually emerging, the space for further decline in magnesium prices may be limited. At the same time, essential procurement will also provide certain support for the magnesium market.

comprehensive analysis

It is expected that the magnesium market will show a weak consolidation trend next week, and the market will closely monitor changes in downstream demand as well as the progress of factory shutdown and maintenance.