Market analysis for this week

This week, the magnesium ingot market remained stable and stable, with a slight increase in magnesium ingot prices at the beginning of the week, an increase of about 200 yuan/ton. However, in the middle and later stages of the week, there was little overall change in the market, and the downstream high price delivery capacity was insufficient, resulting in a stalemate in the market transaction atmosphere. According to the Commodity Market Analysis System of Business Society, as of April 19th, the average price of magnesium ingots in the domestic market was 18733.33 yuan/ton, an increase of 1.08% compared to the previous week.

In terms of supply and demand

The number of factories reducing production and shutting down has increased, leading to a decrease in inventory pressure and a firm quotation from manufacturers. But currently, the market is mainly focused on purchasing for essential needs. At the beginning of the week, some downstream users made moderate purchases due to the sentiment of “buying up but not buying down”. Downstream users followed up cautiously in the middle and later stages of the week, although there were a small number of transactions, the main focus was still on essential needs users.

In terms of raw materials

This week, the market quotation for ferrosilicon in Ningxia was 6300-6400 yuan/ton, an increase of 150 yuan/ton from last week. There is not much inventory in the factory, and some production orders are mainly scheduled. Recently, bidding prices have been introduced to stop the decline and increase. With the increasing positive information, industry confidence has been significantly boosted, and there is a strong reluctance to sell, leading to an increase in market quotations.

This week, the national blue charcoal market operated steadily with a strong bias. Against the backdrop of high cost pressures and low market inventories, some blue charcoal enterprises increased prices by 20-80 yuan/ton. As of April 19th, the mainstream prices of small and medium-sized materials in the Shenmu market were 740-950 yuan/ton, and the coke surface was 580-650 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 720-900 yuan/ton, and the coke surface is 620-700 yuan/ton.

Future Market Forecast

Overall, the magnesium ingot market is showing a stable and positive trend, with an increase in market inquiry enthusiasm. However, the actual downstream demand has not significantly improved. After the continuous increase in magnesium prices, downstream users have insufficient acceptance of high prices. However, the silicon iron market on the raw material side is gradually rising, and the cost support for magnesium ingots is strengthening, while manufacturers maintain a price mentality. Therefore, it is expected that the domestic magnesium ingot market will consolidate and operate in the short term.