Market analysis for this week
According to the Commodity Market Analysis System of the Business Society, as of the 15th, the average price of magnesium ingots in the domestic market was 24333.33 yuan/ton, which is the same as last Friday’s price. This week, magnesium prices were initially suppressed and then increased. At the beginning of the week, market transactions slowed down and prices continued to decline. However, factory inventory pressure was not significant, coupled with high raw material costs, leading to a rebound in the middle and later stages of the week. By Friday, the mainstream factories in the Fugu region are offering a spot exchange rate of 24300-24500 yuan/ton, including tax.
In terms of supply and demand
In terms of supply, the current mentality of magnesium factories is still reluctant to sell at high prices, and some manufacturers have chosen not to offer prices temporarily. In the short term, the factory side quotation may remain firm. In terms of demand, downstream buyers are cautious and find it difficult to accept high priced magnesium ingots, while intermediaries actively inquire and stock up.
In terms of raw materials
This week, the quotation for the ferrosilicon market in Ningxia region is around 6850-7000 yuan/ton, with an average market price of 6970 yuan/ton. The ferrosilicon market has rebounded, and the manufacturer’s operating rate is not low. The orchid charcoal market is relatively strong, with some enterprises experiencing price increases ranging from 60 to 100 yuan/ton. The orchid charcoal market is operating steadily with a strong trend, and the production cost pressure of orchid charcoal enterprises continues to increase. Coupled with the current low starting inventory in the orchid charcoal market, some enterprises have seen orchid charcoal prices rise by 20-50 yuan/ton, initiating the fifth round of price increases.
Future Market Forecast
Overall, the main factors contributing to the sustained strength of magnesium prices are: firstly, low inventory levels among manufacturers and an increase in quotations due to tight spot prices; 2、 Silicon iron and blue carbon are relatively stable and strong, while magnesium prices are supported at the bottom; 3、 As the Double Festival approaches, it cannot be ruled out that the market activity of magnesium ingots has increased. Amidst many positive factors, it is expected that the short-term price of magnesium ingots will remain stable and tend to be strong