According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi region stopped falling and rose this week (3.17-3.21), with an average market price of 15766 yuan/ton at the beginning of the week and 15966 yuan/ton at the end of the week, an increase of 1.27%.

Supply and demand side

Due to the impact of previous magnesium plant shutdowns, the supply of magnesium in the market is currently at a low level. According to the latest statistics, it is expected that the production of raw magnesium in China will decrease by 20% to 25% month on month in the first quarter of 2025, with a decrease of over 30% in the Shenfu region. The market supply has significantly decreased, and the inventory of magnesium factories is mostly at a low level. Magnesium factories generally hold an optimistic attitude towards the future market, therefore their willingness to raise prices is strong and their actions are relatively consistent. In the situation where magnesium factories have a strong willingness to raise prices, it is difficult to see low-priced sources in the market.

demand side

At present, the demand situation in the downstream market remains relatively stable without significant fluctuations. On the application side, inventory levels are maintained at a low level, which means there is a good balance between market demand and supply. Enterprises make timely purchases based on market conditions, without large-scale panic buying or hoarding due to market fluctuations.

comprehensive analysis

In summary, magnesium prices have shown an upward trend this week, with a slight adjustment over the weekend. This fully reflects the bullish expectations of the upstream and downstream markets for the future of magnesium prices. In the short term, it is expected that more magnesium plants will alternate shutdowns and maintenance by the end of the month to maintain a supply level that matches downstream demand. Based on this, it is expected that magnesium prices will continue to maintain a strong and stable trend.