The news of resuming work gradually affects the weak operation of the magnesium market (11.13-11.17)

Market analysis for this week


Sulfamic acid 

According to the Commodity Market Analysis System of Business Society, as of the 17th, the average price of domestic magnesium ingot market was 20866.67 yuan/ton, a decrease of 2.63% compared to the beginning of the month. This week, the price of magnesium ingots showed a first decline and then a stable operation. At the beginning of the week, some factories lowered prices to ship due to weak downstream demand and the fermenting news of factory resumption in the Fugu region; In the later part of the week, magnesium prices approached the cost line and factory quotations began to stabilize.


In terms of supply and demand

In terms of supply, there was news of a magnesium factory resuming production at the beginning of the week. It is understood that a Fugu magnesium ingot manufacturer with a daily output of 80 tons has officially started production, and the price of magnesium ingots is constantly decreasing. Due to approaching the cost line, profit margins continue to compress, and the possibility of manufacturers continuing to lower prices decreases. The downstream demand clock has not shown a significant improvement, and the supply and demand pattern is difficult to make significant changes. The magnesium ingot market continues to be under pressure.


In terms of raw materials


This week, the spot market for ferrosilicon is mainly operating steadily, with quotes in the Ningxia region around 6750-6900 yuan/ton, with an average market price of 6875 yuan/ton. The national orchid charcoal market is temporarily stable in operation, and coal prices continue to rise, supporting the cost of orchid charcoal enterprises. Some companies’ shipment situation has improved compared to the previous period, and there has been a small release of inventory. Affected by this, some companies have raised the price of coke by 30 yuan/ton, and the short-term price of blue charcoal has been firm.


Future Market Forecast


The main production area of magnesium ingots is about to resume production, and the output will be further released. However, the demand side is mainly based on demand procurement, and more cautious follow-up is needed. The contradiction between supply and demand in the magnesium market continues. However, considering that magnesium prices have recently approached the cost line and manufacturers have limited room for price concessions, it is expected that the magnesium market will mainly operate in a weak and stable manner in the short term.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>