Market analysis for this week
This week, the magnesium ingot market continued to operate weakly. Magnesium plants continue to produce, with accumulated inventory under pressure. Downstream enterprises are following up slowly, only maintaining essential procurement. The supply and demand sides of the magnesium market are showing a serious imbalance. And under the financial pressure at the end of the month, the overall weak situation has not significantly improved. According to the Commodity Market Analysis System of Business Society, as of February 29th, the average price of domestic magnesium ingots in the market was 19400 yuan/ton, a decrease of 3% compared to the previous week..
In terms of raw materials
This week, the market price of ferrosilicon in Ningxia is around 6250-6450 yuan/ton, with an average market price of 6407.14 yuan/ton. Recently, industry insiders may have high expectations for the traditional peak demand season of “gold, silver, and four”, or an important conference may be held soon to release some positive news. The market has seen a wave of upward momentum, and industry confidence has increased, with prices increasing by 50 yuan/ton.
This week, the price of blue charcoal has been weak, with some companies lowering their prices by 30-50 yuan/ton. The cost side of the enterprise is under great pressure, and it is basically in continuous losses. The production enthusiasm of blue charcoal enterprises has declined, and some raw material side lump coal auctions have failed. Some factories, in order to recover funds, can only continuously lower the price of magnesium ingots for shipment turnover.
Future Market Forecast
At present, there is a serious supply-demand imbalance in the magnesium ingot market, with the supply side continuing to increase. Downstream resumption of production is less than expected, and only essential procurement is needed. It is difficult for prices to rise, and it is expected that the magnesium ingot market will continue to decline in the short term.
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