According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province was downgraded this week (8.25-8.29), with an average market price of 17300 yuan/ton at the beginning of the week and 17400 yuan/ton at the end of the week, a decrease of 0.57%.
In the last week of this month, due to insufficient demand follow-up and weak performance in the raw material market, the magnesium market showed a narrow consolidation trend at the end of the month. Some factories have lowered prices slightly to win orders due to the need to recoup funds.
This week, under the dual influence of a slight weakening of the market situation and buyers’ mentality of “buying up instead of buying down”, downstream buyers are cautious and mainly focus on meeting rigid demand for procurement. Those users who are not in a hurry to restock temporarily choose to carefully observe market trends.
Supply and demand side
On the supply side, the overall inventory level of magnesium smelting enterprises remains at a low level, which has not put significant pressure on their cash flow. Based on this background, coupled with the generally positive expectations and optimistic attitude of enterprises towards the upcoming market situation in September, they believe that market demand is expected to increase or there is upward space for prices. Therefore, these enterprises appear relatively firm in their sales strategies, and their willingness to actively reduce prices to promote sales is not strong.
In terms of demand, influenced by the mentality of “buying up instead of buying down”, downstream markets have adopted a certain wait-and-see attitude, resulting in a corresponding decrease in procurement volume.
Raw material end
The market price of coal has experienced a slight decrease, while the price of blue charcoal has remained relatively stable, and the price of ferrosilicon has also remained stable, resulting in a slight reduction in overall costs.
comprehensive analysis
From the analysis of supply and demand, the current market demand is weak and lacks strong demand as support, so it is expected that the momentum for the recovery of the magnesium market will be insufficient in the short term. However, given the overall low inventory of factory spot goods and the continued support of rigid demand for the magnesium market, it is relatively difficult for magnesium prices to further decline. The magnesium market may show a weak and stable consolidation trend next week.
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