SunSirs: Lack of Favorable Support, Magnesium Prices Had Fallen to a Recent Low (August 9-16)

https://www.chemnet.com   Aug 19,2024 SunSirs

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the magnesium ingot market in Shaanxi Province fell this week (8.9-8.16), with an average market price of 18,033 RMB/ton at the beginning of the week and 17,933 RMB/ton at the end of the week, a weekly decline of 0.55%.

Analysis review

This week, the price of magnesium ingots reached a near low in five months, stabilizing and slightly weakening. The price had fallen to near the cost line, and manufacturers had a pro price mentality. Some magnesium factories had slightly reduced prices to promote transactions.

Supply and demand side

Insufficient driving force on the demand side, coupled with weak raw material prices, did not provide favorable support for magnesium prices. Confidence in the future market is clearly lacking, and magnesium prices continue to be under pressure.

In terms of raw materials

The price of Fugu 75 ferrosilicon had fallen compared to last week. Recently, the futures of ferrosilicon had fluctuated downwards, and the spot market had followed suit with a weak decline. Market transactions were light, and there was a downward pressure on downstream purchases. The actual transaction price of ferrosilicon had slightly loosened, and it is expected that the ferrosilicon market may remain stagnant in the short term, with little possibility of a significant price adjustment.

The price of semi-coke in Fugu area remained stable, and mainstream manufacturers' quotations remained basically unchanged. It is expected that semi-coke will not rise in the short term and will continue to maintain a weak and stable trend.

Market outlook

As of August 16th, the downstream demand for magnesium ingots was poor, with only essential purchases maintained, and the market supply and demand remained deadlocked. The short-term supply and demand pattern of the magnesium market is unlikely to change, and it is expected that the magnesium market will continue to maintain a weak and stable trend, with prices fluctuating narrowly in the low range.

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