Market analysis for this week

The magnesium ingot market remained stable this week. The market is in a stalemate, and due to cost reasons, manufacturers are reluctant to sell at high prices. However, downstream users and intermediaries have not seen significant improvement in demand, and there is insufficient high-level transactions for magnesium ingots. It is difficult for prices to change significantly in the short term, and factory quotations remain stable for the time being. According to the Commodity Market Analysis System of Shengyishe, as of May 17th, the average price of magnesium ingots in the domestic market was 18466.67 yuan/ton, unchanged from last week.

In terms of supply and demand

At present, some manufacturers in the market are experiencing losses due to relatively low prices, and their willingness to ship is low. Some manufacturers are shipping normally, and inventory pressure is relatively low. The overall market supply and demand pattern is relatively loose. Magnesium plants are operating at a relatively high level with sufficient supply, but the high and stable raw material prices provide strong cost support, making it difficult for magnesium prices to decline. However, downstream users lack the ability to accept high prices and only maintain basic replenishment, resulting in limited fluctuation space for magnesium prices.

In terms of raw materials

This week, the market price of ferrosilicon in Ningxia was between 6900-7000 yuan/ton, an increase of 0.83% compared to last week. Ferrosilicon manufacturers have seen higher profits, increased enthusiasm for resuming production, and increased production. Coupled with the centralized procurement of steel mills through bidding this week, corporate sentiment has improved. In the short term, the domestic spot market for ferrosilicon may continue to be strong.

This week, Orchid Charcoal is temporarily running steadily. Although the prices of raw materials have declined, due to the lack of inventory in many blue charcoal enterprises, some enterprises need to queue up for loading, and the market supply is temporarily tight. Blue charcoal enterprises have obvious price support sentiment. As of May 17th, the mainstream prices of small and medium-sized materials in the Shenmu market are 880-960 yuan/ton, and the coke surface is 610-680 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 890-1000 yuan/ton, and the coke surface is 660-700 yuan/ton.

Future Market Forecast

Due to cost support, many manufacturers are offering higher prices. But downstream users are resistant to high prices, and the upward trend of magnesium prices is weak. Overall, magnesium prices are in a dilemma, and it is expected that the short-term magnesium ingot market will continue to operate relatively steadily, with narrow fluctuations within the price range.