According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province has slightly declined, with an average market price of 17833 yuan/ton at the end of the month and 18033 yuan/ton at the beginning of the month, a decrease of 1.11% in the month

This month’s market analysis

There was no expected “golden September and silver October” trend in October. In the first half of the month, amidst the factory’s willingness to raise prices, magnesium prices remained stable. However, due to the continuous decline in the price of raw material ferrosilicon and the loss of support on the cost side, coupled with the low enthusiasm of downstream procurement, magnesium prices rebounded at the end of the month.

Supply and demand side

As the end of the month approaches, there is no expected peak season for gold, nine, and silver. Downstream terminal demand is weak, mainly focused on replenishing inventory for essential needs, with significant price pressure. The market is mostly cautious and wait-and-see. The magnesium market is in a state of anxiety, and traders’ operations are also relatively sluggish, with the industry showing mostly weak sentiment.

In terms of raw materials

As of now, the mainstream ex factory price in the Fugu market of Shaanxi province for raw material 75 silicon iron is 6700-6800 yuan/ton. There is no significant increase in demand in the silicon iron market in the short term, and it is expected that the silicon iron market will experience narrow fluctuations in the short term.

The raw material orchid charcoal market is operating steadily. As of October 25th, the mainstream price of small and medium-sized materials in the Shenmu market is 890-1020 yuan/ton, and the coke surface price is 620-710 yuan/ton; The mainstream prices for small and medium-sized materials in the Fugu market are 860-1100 yuan/ton, and 680-750 yuan/ton for coke surface; The mainstream price of coke in the Zhongwei market is 620 yuan/ton; The mixed material in Shizuishan market costs 640-720 yuan/ton; The price of small and medium-sized materials in the Ordos market is 820-1000 yuan/ton, and the price of coke surface is 670-780 yuan/ton; The price of small and medium-sized materials in Hohhot market is 980 yuan/ton, and the price of coke surface is 780 yuan/ton; The price of small and medium-sized materials in Hami market is 920-1050 yuan/ton, coke surface is 380-1050 yuan/ton, and mixed materials are 300-360 yuan/ton; The price of small and medium-sized materials in Changji market is 850-1220 yuan/ton, and the price of coke surface is 550 yuan/ton, all of which are ex factory cash prices including tax. The prices of small and medium-sized materials such as blue charcoal in Tianjin Port are 1250-1300 yuan/ton, and coke face is 950-980 yuan/ton, both of which are cash inclusive of taxes at the port closing price.

Future forecast

From the perspective of supply and demand, there is currently no significant improvement. Given the current situation of strong supply and weak demand, it is not easy for magnesium prices to rebound in the short term. However, the price of ferrosilicon on the raw material side supports the price of magnesium, and coupled with the fact that the magnesium market is already operating at a low point, it is difficult to further reduce it. Expected to experience narrow fluctuations at the bottom in the short term.