According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province fell this week (10.27-10.31), with an average market price of 16375 yuan/ton at the beginning of the week and 16325 yuan/ton at the end of the week, a decrease of 0.31%.
The magnesium market shows a trend of first decreasing and then stabilizing, with a bottoming out and rebounding trend: In the early stage, the overall focus of magnesium prices continued to shift downwards. However, as the willingness of ordinary magnesium product production factories in Fugu area to further reduce prices gradually decreased, the market tended to operate stably in the later stage.
Supply and demand side
In terms of supply, the domestic economic situation has shown a stable and positive trend recently, with overall domestic demand remaining stable and rising, and market consumption vitality continuing to be released. However, due to fluctuations in the international market and some uncertain factors, export trading companies have adopted a cautious and wait-and-see attitude this week, with significantly reduced procurement plans for raw materials and commodities, waiting for further market clarity.
In terms of demand, this week, the supply of raw magnesium has remained stable compared to the previous period. At present, the inventory of magnesium smelting enterprises is still at a relatively low level, and the willingness of enterprises to raise prices is very strong. Most of them choose not to carry out shipment operations temporarily. However, as the end of the month approaches, some companies have experienced a small shipment due to cash pressure.
Raw material end
The price of coal shows a certain downward trend, while the price of blue charcoal remains generally stable, and the price of ferrosilicon has slightly decreased, resulting in a corresponding reduction in overall costs.
comprehensive analysis
This week, the market presents a fierce game between supply and demand, with strong willingness from upstream to raise prices, while downstream expectations for prices are relatively low. Due to the tight short-term cash flow of magnesium smelting enterprises, market prices have experienced a certain degree of decline. However, given the current situation of cost inversion, further price reduction faces significant difficulties.
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