The magnesium ingot market in Shaanxi has declined, with an average market price of 16600 yuan/ton as of now, and an average price of 16750 yuan/ton at the beginning of the month, a decrease of 0.90%.
This month’s market analysis
In May, the overall trend of domestic magnesium prices showed a fluctuating trend of “first suppression, then rise, and then fall back”. In the first half of the month, the price fell from a high level, continued to explore the bottom in the middle, and quickly rebounded in the second half due to multiple factors. At the end of the month, it was under pressure again and fell back, with significant overall fluctuations.
Supply and demand side
In early May, magnesium prices were under pressure to decline, mainly due to weak downstream demand and high supply side operating rates. Under the pressure of inventory accumulation, companies offered discounts and shipped, driving prices to continue to weaken; Mid market sentiment was bearish, and prices briefly fell to a low level during the exploration phase. In the latter half of the year, some enterprises showed an increased willingness to raise prices, coupled with periodic maintenance leading to a marginal contraction in supply. At the same time, downstream enterprises released demand for inventory replenishment at low prices, driving a rapid rebound in prices. But at the end of the month, downstream procurement returned to rationality, and demand sustainability was insufficient. Coupled with the outflow of some low-priced goods, prices fell again.
Future forecast
The short-term rebound momentum of magnesium prices has weakened, and the medium-term supply and demand pattern is still relatively loose. If there are no new positive drivers, the price may continue to fluctuate weakly in the future. It is expected that magnesium prices will mainly operate in the range of 16400-17000 yuan/ton, showing a bottom rising but weak upward trend.
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