Market analysis for this week
According to the Commodity Market Analysis System of Shengyishe, as of the 31st, the average price of magnesium ingots in the domestic market was 20600 yuan/ton, a decrease of 1.12% compared to the previous week. This week, magnesium ingot prices have been weak and downward, due to the continued weak downstream demand, coupled with some factories resuming work and slightly increasing production, magnesium prices have been suppressed.
In terms of supply and demand
The supply and demand sides continue to engage in a game, with enterprises in the main production areas gradually resuming production and market supply continuously increasing. However, downstream demand has not improved, and domestic market transactions are sluggish. The foreign market has entered traditional holidays, resulting in a decrease in orders. In addition, due to the recent increase in sea freight rates, foreign orders have been reduced.
In terms of raw materials
This week, the market price of ferrosilicon in Ningxia is around 6550-6700 yuan/ton, with an average market price of 6661.43 yuan/ton. The spot price of ferrosilicon is operating weakly. Currently, there is sufficient inventory of ferrosilicon, and it is difficult to release it in the pre holiday end market. Steel mills still have the willingness to purchase at lower prices, and it is expected that the price of ferrosilicon may fluctuate weakly. The price of orchid charcoal remains stable, with Shenmu orchid charcoal small materials priced at around 1080-1160 yuan/ton. Currently, orchid charcoal enterprises mainly consume inventory while maintaining their own profits, and production often continues at low loads. It is expected that the short-term price will stabilize, and there is some cost support for magnesium plants.
Future Market Forecast
The short-term supply of magnesium in the market is more than expected, and the overall market is not optimistic. However, the current magnesium price factory profits are close to the bottom, and there is limited room for further reduction in magnesium prices. It is expected that the price of magnesium ingots will remain stable.
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