Magnesium Prices Bottom Out and Rise (11.3-11.7)

According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi region stopped falling and rebounded this week (11.3-11.7), with an average market price of 16350 yuan/ton at the beginning of the week and 16450 yuan/ton at the end of the week, an increase of 0.61%.

This week, the magnesium market showed a trend of first falling and then rising. At the beginning of the week, the market was in a weak and stable state, with an overall calm atmosphere. Magnesium prices remained relatively stable, and inquiries and purchases were not common in the market. In the later part of the week, there was an increase in the quotation, and the factory further raised the quotation to the range of 16400 yuan to 16500 yuan/ton.
Supply and demand side
In terms of supply and demand, factories on the supply side have a willingness to stabilize prices. This willingness is partly due to the recent slight increase in coal prices on the raw material side. When the price is low, factories are unwilling to reach a deal at a low price, so by the end of the week, the market quotation showed a step-by-step upward trend. However, based on current feedback from downstream markets, customers’ acceptance of high priced products is not high.
Raw material end
The price of coal has risen significantly and is showing a trend of further price increases, while the price of blue charcoal has not yet increased accordingly, and the price of silicon iron has remained basically stable. Overall, the cost has significantly increased.
comprehensive analysis
This week, the market showed clear signals of bottoming out, with coal prices unexpectedly rising during the consolidation phase at the bottom. Affected by this, although magnesium prices have also risen, the increase is not as significant as the cost increase. Given the expected increase in coal and silicon iron prices, it is expected that magnesium prices may further increase in the future.