Market analysis for this week

This week, the price of magnesium ingots remained weak and stable, with little change in the supply and demand pattern. The actual market transactions were average. According to the Commodity Market Analysis System of Business Society, as of January 12th, the average price of domestic magnesium ingots in the market was 20566.67 yuan/ton, a decrease of 0.16% compared to the previous week.

In terms of supply and demand

In terms of factories, production has increased, coupled with weak downstream demand, which is mainly based on rigid demand. Some downstream enterprises have also stopped production and had a holiday early during the Spring Festival; The overseas situation is tightening, and some customers are delaying procurement, resulting in increased inventory pressure. Overall, the imbalance between supply and demand in the magnesium market is difficult to improve in the short term, and the market has a strong bearish sentiment.

In terms of raw materials

This week, the market price of ferrosilicon in Ningxia was around 6500-6600 yuan/ton, with an average market price of 6571 yuan/ton, a decrease of 1.03%. At present, due to the continuous decline in the market, coupled with the influence of the “buy up not buy down” sentiment and the lack of optimism about the future market, the overall wait-and-see atmosphere in the ferrosilicon market is relatively strong, and the actual operating situation is cold.

This week, the blue charcoal market was operating weakly. Mainstream calcium carbide enterprises in Inner Mongolia have lowered the purchase prices of small and medium-sized materials by 30-40 yuan/ton, and some enterprises have lowered their blue charcoal quotations by 30 yuan/ton. Although coal tar prices can provide some profit subsidies to blue charcoal enterprises, it is difficult to reverse the situation of enterprise losses, and the blue charcoal market is operating weakly in the short term. As of January 12th, the mainstream prices of small and medium-sized materials in the Shenmu market are 980-1160 yuan/ton, and the coke surface is 680-750 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 1000-1200 yuan/ton, and the coke surface is 700-750 yuan/ton.

Future Market Forecast

Overall, there has been no significant improvement in the supply and demand fundamentals of the magnesium market, and downstream demand remains weak and sluggish. Considering that the price of magnesium ingots is close to the production cost line, coupled with support from raw material costs, there is limited room for exploration. It is expected that the bottom range of magnesium ingot prices will remain stable in the short term.