According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi remained stable this week (2.1-2.14), with an average market price of 16250 yuan/ton at the beginning of the week and 16250 yuan/ton over the weekend, maintaining stability.
This week’s market analysis
The magnesium market remained stable after the Spring Festival holiday in the Year of the Snake, with prices remaining largely stable. Due to the recent end of the Spring Festival holiday, downstream enterprises have resumed work and production one after another, and the market is mainly focused on digesting inventory from before the year, with relatively limited transactions. The factory has received some new orders while executing pre-sale orders from before the year, and the overall inventory pressure is not significant. Until the end of the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) Festival, there were few transactions in the market as a whole. Downstream enterprises purchased on demand, and some users with inventory chose to wait and see the market.
Supply and demand side
New orders have been fulfilled one after another after the year, and there is currently limited supply of spot goods. Analysis suggests that due to the slow resumption of work by downstream enterprises and the need to digest pre year inventory, demand growth is limited in the short term, and the possibility of a recovery in the magnesium market is relatively small. However, due to the low inventory pressure in the factory and strong cost support, it is expected that the quotation will remain firm. With the gradual release of demand, the magnesium market is expected to continue to maintain a stable operating trend.
Currently, there is no significant rebound in downstream demand, and there is a lack of clear positive news to boost it. Therefore, it is expected that the magnesium market will not show a significant improvement in the short term. However, considering that the overall inventory pressure in the factory is not high, and the current magnesium price has put the factory in a serious loss making state, it is expected that the quotation will remain firm due to cost support. Meanwhile, with the continued implementation of the storage policy, the difficulty of further reducing magnesium prices is also increasing.
comprehensive analysis
In summary, it is expected that in the coming period, the magnesium market will mainly maintain a stable operating trend, with relatively small fluctuations. The market will closely monitor the follow-up of downstream demand, as well as changes in the raw material market and international trade environment, in order to make more accurate market judgments.
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