Market analysis for this week

This week, the magnesium ingot market remained stable with an upward trend, but returned to the market after the holiday. The price of magnesium ingots was supported by the cost side, leading to an increase in prices. Additionally, some downstream enterprises have increased their centralized procurement and replenishment, and manufacturers have a strong willingness to support prices. However, downstream acceptance is relatively limited in the later stage, market trading is limited, and the support for the increase in magnesium prices is not strong. According to the Commodity Market Analysis System of Business Society, as of May 10th, the average price of magnesium ingots in the domestic market was 18466.67 yuan/ton, an increase of 0.36% compared to the previous week.

In terms of supply and demand

The overall supply and demand pattern has not undergone substantial changes. At present, some manufacturers are considering the current production factors, maintaining a firm quotation and not shipping at a low price. In terms of demand, some downstream enterprises have restocking behavior on the first day after the holiday, while most downstream enterprises still have pre holiday inventory to consume, and downstream demand has not significantly increased yet.

In terms of raw materials

This week, the market price of ferrosilicon in Ningxia was between 6700-6800 yuan/ton, with an average market price of 6797.14 yuan/ton, an increase of 0.70% from the beginning of the month. There is continuous good news in the ferrosilicon market, and there is a shortage of low-priced spot goods. Currently, manufacturers are basically scheduling production orders. With the shift of the price center of ferrosilicon, the profits of enterprises continue to recover, and there are more manufacturers resuming production. There is room for increased production in the later stage, and it is expected that the price of ferrosilicon will be strong in the short term.

This week, the national blue charcoal market remained stable and slightly strong. As of May 11th, the price of medium materials in the Shenmu market was 860-960 yuan/ton, the price of small materials was 750-900 yuan/ton, and the mainstream price of coke surface was 610-660 yuan/ton, all of which were factory prices including taxes in cash; The mainstream prices of small and medium-sized materials in the Fugu market are 890-1000 yuan/ton, and the coke surface is 660-700 yuan/ton, all of which are ex factory prices including taxes in cash.

Future Market Forecast

Overall, after a slight increase in the price of magnesium ingots, market procurement has not increased, and downstream acceptance of high prices is not high. Therefore, the further boost to the rise in magnesium prices is not enough. Both supply and demand sides mainly rely on transactions of essential demand, and it is expected that the short-term magnesium ingot market will operate steadily.