Overview of the price trend of magnesium metal

Market analysis for this week

According to the Commodity Market Analysis System of Business Society, as of the 16th, the average price of domestic magnesium ingot market was 23933.33 yuan/ton, a decrease of 3.62% compared to the beginning of the month. This week, the price of magnesium ingots has been weakened and lowered. The market is relatively flat after the holiday, and there is less centralized inventory in the downstream. Additionally, there has been a slight increase in factory inventory after the holiday, and some manufacturers are interested in offering profits for shipment.

In terms of supply and demand

In terms of supply, there has been a slight increase in factory inventory after the holiday. Some factories are willing to sell at a lower price, while most factories do not have significant pressure to sell. The space for selling at a lower price is limited, and the willingness to sell at a lower price is not strong. In terms of demand, downstream orders are mostly based on inquiries, with fewer actual transactions.

In terms of raw materials

Due to the lack of market confidence caused by the decline in futures trading, the price of ferrosilicon has dropped. This week, the price of ferrosilicon in the Ningxia region was around 6800-7000 yuan/ton, with an average market price of 6914 yuan/ton, a decrease of 3.59%. In the absence of favorable market support, the spot market for ferrosilicon may operate in a weak position.

This week, the national orchid charcoal market temporarily stabilized after rising. On October 11th, downstream mainstream calcium carbide enterprises raised the purchase price of orchid charcoal by 79.1-80 yuan/ton, and orchid charcoal enterprises gradually raised prices ranging from 30-80 yuan/ton, with the first round of price increases landing. The mainstream price of small and medium-sized materials in the Shenmu market is 1330-1550 yuan/ton.

Future Market Forecast

Overall, downstream demand has been sluggish this week, and the cost support for raw material ferrosilicon has weakened, leading to a slight decline in the magnesium ingot market. The willingness of factories to offer profits for shipment has increased compared to before, but the production of magnesium ingots in the main production area remains low. Most factories have little pressure on shipment, and it is expected that the price of magnesium ingots will continue to decline with limited space, showing a weak steady state trend in the short term.