SunSirs: Cost Supported, Magnesium Price Rebounded after Holiday (June 19-25)

https://www.chemnet.com   Jun 26,2023 SunSirs

　　According to the monitoring of SunSirs, as of the 25th, the average price of domestic magnesium ingot market was 20,766.67 RMB/ton, a decrease of 1.58% on a weekly basis. The market price of magnesium ingots continued to fall this week, but the decline began to slow down gradually. After falling to the 20,000 RMB threshold, the price began to rise steadily. The price of magnesium in the main production areas rebounded 500 RMB/ton after the Dragon Boat Festival.

　　In terms of supply and demand

　　On the factory side, magnesium prices had fallen to the factory cost line, and there was limited room for retreat. Coupled with the difficult operation of the factory under the high temperature and scorching heat, magnesium factories had a strong willingness to increase prices. In terms of demand, the recent trading volume of some magnesium factories in the main production areas had improved compared to before, but with the approaching holiday, procurement had slowed down.

　　In terms of raw materials

　　Recently, coal prices showed a slight rebound trend after stabilizing, with ferrosilicon futures fluctuating and rebounding before the holiday. After the holiday, the ferrosilicon market was operating in a weak consolidation mode, and magnesium prices are expected to stabilize at the bottom under cost support.

　　Market outlook

　　Overall, as of the 25th, magnesium prices had dropped to near the factory cost line, and the factory was not willing to continue to lower prices for shipment. Moreover, coal prices rebounded slightly on the 25th, and magnesium prices are expected to rebound from the bottom. However, there had been no significant improvement in downstream demand recovery, and it is difficult for magnesium prices to continue to rebound. It is expected that short-term magnesium ingot prices will remain stable.

 Print  |    add to Favorites  |    Close