According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province has slightly declined, with an average market price of 18066 yuan/ton at the end of the month and 18033 yuan/ton at the beginning of the month, an increase of 0.18%.

This month’s market analysis

Affected by the traditional off-season in August, downstream procurement enthusiasm is not high, and it is almost in a wait-and-see attitude. Factory shipments are generally average. Magnesium prices continued to decline in mid month, falling below the factory cost line. During this period, trading companies increased their inventory. On the last weekend of August, the price of magnesium ingots experienced a long-term consolidation in the early stage and ushered in a wave of upward trend. On the first day of this week, the ex factory price experienced the largest increase since the start of the off-season, rising by 200-500 yuan per day.

Supply and demand side

The market confidence has been boosted by the atmosphere of gold, silver, and silver. From the perspective of supply and demand, there has been no significant improvement in current demand. In the absence of strong and strong support, magnesium prices encountered resistance in their upward trend. In the last week, factories made slight price concessions, but the overall market has a strong willingness to raise prices. The operating rate of magnesium alloy die-casting customers has increased, and demand is gradually improving.

In terms of raw materials

The silicon iron market rose first and then fell in August. At the beginning of the month, thanks to the news that some factories in Zhongwei had stopped production and reduced production, and the expectation of production reduction in the later period, the futures performance was quite awesome, the panel price rose significantly, and the spot price also rose. But the good times didn’t last long, as the pessimistic performance of black series futures had a “drag” on ferrosilicon futures. In addition, August was the traditional off-season for demand in the industry, and news of production cuts and maintenance on the demand side was also reported one after another. The actual market demand still needed improvement, and the industry sentiment was pessimistic, resulting in a decrease in transaction prices.

At the beginning of August, the Lantan market experienced a downward trend. Under the weak support from both the cost and demand sides, the Lan Charcoal market continues to be bearish. Downstream mainstream calcium carbide enterprises have lowered the purchase price of small and medium-sized materials by 50 yuan/ton. As a result, enterprises have gradually implemented the reduction, and the fourth round of price cuts by Lan Charcoal has basically been fully implemented. As of August 30th, the current price of intermediate materials in Shenmu market is 790-860 yuan/ton, the price of small materials is 775-850 yuan/ton, and the mainstream price of coke surface is 630-680 yuan/ton, all of which are cash inclusive of tax at the factory price. The current price for medium materials in Fugu market is 850-930 yuan/ton, for small materials it is 810-950 yuan/ton, and for coke surface it is 660-730 yuan/ton. All of the above prices are ex factory cash inclusive of tax.

Future forecast

It is expected that overseas market demand will ease in September. In the short term, the domestic magnesium ingot market is generally operating in a stable trend. Looking forward to the trend of the Golden September market.