According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province rose this week (4.14-4.18), with an average market price of 16450 yuan/ton at the beginning of the week and 16750 yuan/ton over the weekend, an increase of 1.82%.
Affected by the aftermath of last week’s sharp decline in market prices, industry participants’ confidence was generally dampened at the beginning of this week, and market trading prices continued to show a slight downward trend; By the second half of the week, with downstream user inventory levels basically dropping to a low level, driven by concentrated replenishment demand, the market price of magnesium products quickly rebounded, forming a significant rebound trend.
Supply and demand side
On the supply side, the original magnesium production is showing a continuous contraction trend, and magnesium factories are extremely determined to raise prices based on cost support and profit considerations. When market prices are in the low range, multiple magnesium factories adopt a strategy of suspending quotations to reduce the impact of low-priced transactions on the price system. This supply side’s reluctance to sell has enabled market prices to quickly rebound. On the demand side, at the beginning of the week, downstream enterprises showed a strong wait-and-see attitude due to the inertia of previous price declines, and their procurement actions tended to be cautious. However, as inventory levels gradually decrease and market prices approach the recent bottom, downstream enterprises actively enter the market to purchase and replenish goods to ensure production continuity.
Raw material end
The price of coal raw materials relied on for the production of blue charcoal has experienced a certain degree of decline. Due to this transmission effect, the market price of blue charcoal has also shown a weakening trend. At the same time, the price of silicon iron has also entered a downward adjustment mode. In this situation, the overall support of the cost side for the prices of related products has weakened.
comprehensive analysis
In summary, against the backdrop of no significant fluctuations in current supply, there is an overall dynamic balance pattern between supply and demand. Expected short-term price fluctuations within the range.
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