Overview of the price trend of magnesium metal

Market analysis for this week

According to the monitoring of Business Society, as of the 18th, the average market price of magnesium ingots in China was 21966.67 yuan/ton, an increase of 0.15% on a weekly basis. At the beginning of the week, there was a slight downward trend in the magnesium ingot market. Magnesium factories started to sell at high prices, and the magnesium price once again hit the 22000 yuan/ton mark. However, the market’s high prices were weak, and the price remained stable at 21900-22000 yuan/ton by Friday.

In terms of supply and demand

In terms of factories, considering the trend of inventory decline due to downstream restocking this week, and the slow resumption of production in magnesium factories, the market operating rate this week is about 47.52%. The factory has a strong willingness to raise prices, and it is difficult to find low-priced goods on the market. In terms of demand, downstream customers’ inquiry and procurement activity has increased this week, but facing rising magnesium prices, traders’ procurement enthusiasm has gradually decreased. In terms of overseas demand, the summer break abroad is about to end, and there may be a slight growth trend in overseas orders.

In terms of raw materials

This week, ferrosilicon futures have continued to decline, with only a slight rebound on Friday, and spot prices have slightly decreased by 50-100 yuan/ton. At present, the inventory pressure of manufacturers is relatively low, and the steel bidding prices generally increased in August, while the willingness of ferrosilicon manufacturers to further reduce is relatively low. The carbon market is operating steadily, and currently the overall inventory of the blue charcoal market is low, with stable market transactions being the main focus. The current prices of blue charcoal in the main national markets are as follows: the mainstream prices of small and medium-sized materials in the Shenmu market are 970-1100 yuan/ton, and the coke surface is 700-780 yuan/ton.

Future Market Forecast

Overall, the supply side of magnesium ingots has further contracted, and under relatively low supply pressure from factories, they tend to hold a mentality of high prices and reluctance to sell. Considering the downstream wait-and-see sentiment, it is expected that the short-term magnesium price will remain stable and slightly strong.