Supply and demand stalemate, magnesium prices are easy to defend but difficult to attack (11.20-11.27)

Market analysis for this week


sulphamic acid

According to the Commodity Market Analysis System of Business Society, as of the 27th, the average price of magnesium ingots in the domestic market was 20900 yuan/ton, an increase of 0.16% compared to the beginning of the month. This week, the price of magnesium ingots showed a trend of first falling and then rising. At the beginning of the week, the market quotation was slightly lowered. In the middle of the week, as downstream procurement and intermediary replenishment inquiries increased, the market quotation increased accordingly. The price was concentrated between 20700-20800 yuan/ton, and market transactions slowed down significantly. Both supply and demand sides operated cautiously, making it difficult to find low-priced goods.


In terms of supply and demand

The current supply-demand contradiction in the magnesium market still exists, and there are many news about the resumption of production in the main production areas in the market. Both the supply and demand sides are more cautious in buying and selling. Magnesium factories tend to offer stable prices, while downstream users actively seek low-priced sources. The acceptance of high prices is limited, and the supply and demand sides are in a stalemate.


In terms of raw materials


This week, the spot market for ferrosilicon has been mainly downgraded, with market prices in Ningxia around 6700-6800 yuan/ton and an average market price of 6728.57 yuan/ton. Affected by the continuous decline in futures trading, the confidence in the ferrosilicon market is insufficient, and there is no significant increase in downstream demand. It is expected that ferrosilicon will operate weakly and steadily in the short term. In terms of coal, the price of blue charcoal remains stable, and the price of small materials of Shenmu blue charcoal is around 1180-1280 yuan/ton.


Future Market Forecast


The phenomenon of oversupply in the current magnesium ingot market still exists, and downstream actively seek low-priced sources of goods. However, considering that magnesium prices are gradually approaching the cost line, the willingness of magnesium factories to maintain prices has increased. It is expected that the domestic magnesium ingot market will operate steadily and steadily in the short term.

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