According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province slightly declined this week (12.22-12.26), with an average market price of 15725 yuan/ton at the beginning of the week and 15700 yuan/ton at the end of the week, a decrease of 0.16%.
This week, the overall change in the domestic magnesium ingot market was limited, with market prices mainly stabilizing through consolidation, and the overall trend of weak and stable operation continued. According to market research conducted by Friday, the quotes from mainstream factories in Fugu area still remain at the level of 15700 yuan/ton including tax in foreign exchange, and other regional markets also maintain a stable price trend.
Supply and demand side
In terms of supply, the transaction price of magnesium ingots has been below the cost line of magnesium smelting enterprises for a long time. With the rise of coal prices, magnesium smelting enterprises have become increasingly willing to raise prices, and some enterprises even choose not to quote. In addition, several magnesium smelting companies are planning to reduce production or switch to building new magnesium alloy production capacity.
In terms of demand, the overall demand performance is relatively weak, and coupled with the continuous appreciation of the RMB, the prices offered by the demand side are difficult to match the current market situation. Downstream customers and intermediaries have a low acceptance of the current price level and are waiting for the right opportunity to enter the market for procurement, with an overall cautious purchasing behavior.
raw material end
Affected by factors such as the continuous rise in coal prices and the decline in orchid charcoal prices, the cost of magnesium smelting has further increased, and the loss situation of magnesium smelting enterprises has further intensified.
comprehensive analysis
The market has been under continuous pressure recently, with significant price differences between supply and demand sides. At present, coal prices are at a high level, and transaction prices are difficult to cover production costs. In this situation, the quotations of magnesium smelting enterprises will further present a differentiated pattern. It is expected that the subsequent market price stalemate will be effectively alleviated after the gradual release of magnesium alloy production capacity.
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