According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province continued to rise this week (7.21-7.25), with an average market price of 16425 yuan/ton at the beginning of the week and 17225 yuan/ton at the end of the week, an increase of 4.87%.
The magnesium market has shown strong upward momentum. At the beginning of the week, the quotation continued the level of last weekend and started a moderate upward trend. In the middle of the week, the price jumped above 17000 yuan/ton and continued to rise. As the weekend approached, the mainstream transaction price had steadily risen.
Supply and demand side
On the supply side, the spot circulation inventory in the magnesium production process has always been maintained at a low level. Due to tight order schedules, some companies have reluctantly suspended their quotations, and the scarcity of spot resources has become increasingly significant. At the same time, holders of low-priced goods in the market are generally reluctant to sell, which has led to a strong sentiment, causing the market supply and demand situation to quickly shift from the previous loose situation to a tight state, further enhancing the driving force for price increases and driving prices to continue rising.
On the demand side, with the concentrated release of demand for magnesium in industries such as new energy vehicles and two wheeled electric vehicle components, the market demand scale is rapidly expanding. In addition, influenced by the prevalent consumer psychology of “buying up, not buying down” in the market, the purchasing enthusiasm of application end enterprises and traders has been fully ignited, thus forming a strong upward force on magnesium prices from the demand side, injecting momentum into the rise of magnesium prices.
Raw material end
Recently, coal, ferrosilicon, and other essential raw materials for magnesium smelting have seen their prices continue to rise. This trend has directly increased the cost burden of magnesium production, thereby building a stable bottom line for magnesium prices and becoming an important driving force behind the rise in magnesium prices.
comprehensive analysis
Recently, the non-ferrous industry as a whole has shown a significant upward trend, which has had a certain driving effect on the magnesium market. However, as of this week, the core factors behind the rise in magnesium prices still lie in the weak supply and strong demand pattern presented at the supply and demand level, as well as the cost push brought about by the rise in raw material prices. Looking ahead to the future market, it is expected that magnesium prices will maintain a strong and stable trend in the short term.
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