Magnesium prices have risen rapidly this week (5.5-5.9)

According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province rose this week (5.5-5.9), with an average market price of 16650 yuan/ton at the beginning of the week and 17275 yuan/ton over the weekend, an increase of 3.75%.
This week, the magnesium market was stirred up by developments related to the dolomite mine in Wutai County. Affected by the news from the mining area, downstream procurement demand has significantly released, with a significant increase in procurement volume. Factory inventory has quickly tightened, leading to a rapid rise in magnesium prices.
Supply and demand side
Some factories that were originally planned to gradually resume production after the holiday are currently adopting a wait-and-see attitude due to changes in the supply of dolomite; Enterprises that are still in production generally have lower inventory levels. Considering the possibility of further increase in raw material costs, these in production enterprises have a low willingness to ship and are more inclined to maintain price stability, resulting in a significant increase in their willingness to raise prices. There is currently no clear sign of a rebound in downstream demand.
Raw material end
Recently, the market price of coal used for producing blue charcoal has shown a downward trend, while the price of blue charcoal itself has remained relatively stable, and the price of ferrosilicon has also experienced a slight decline. However, due to the shortage of dolomite supply, companies have to seek alternative sources of goods from other regions. As a result, it is expected that the total production cost will increase significantly in the future.
comprehensive analysis
Once the shutdown period is extended, the smelting efficiency of the main magnesium production areas will be significantly suppressed, and the cost of raw material procurement will also increase significantly. In this situation, there is a possibility of further increase in magnesium prices.