According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province was weakly stable and consolidated this week (11.17-11.21), with an average market price of 16125 yuan/ton, maintaining stability in the low range.
| Gamma-PGA (gamma polyglutamic acid) |
Looking back at the market performance this week, there has been no significant change in the overall market situation, and prices have remained relatively stable. Due to a significant increase in market supply last month, while overall demand remained flat, magnesium prices are under downward pressure and are currently operating in the annual low range.
Supply and demand side
On the supply side, mainstream factories still adhere to the price line of 16000 yuan/ton and are unwilling to further reduce prices to prevent them from falling below the cost line. The production situation of the refining enterprise remains stable, with a slight increase in output. In the first half of the week, shipments were basically made according to market conditions. However, as the weekend approached, the willingness of refining companies to raise prices was once again strengthened due to the impact of rising coal prices.
In terms of demand, downstream enterprises have shown a steady growth trend in demand. However, alloy processing enterprises in the middle reaches have high production costs due to the long-term high aluminum prices, making it difficult for production progress to keep up with the pace of downstream market demand. Affected by the consumer psychology of “buying up, not buying down”, customers’ purchasing willingness continues to be low, and they only replenish a small amount of essential goods at low levels. Most companies with demand choose to wait and see, waiting for a more suitable time.
Raw material end
The price of coal has shown a further significant upward trend, while the price of blue charcoal has remained relatively stable, and the price of ferrosilicon has also remained stable. Overall, the cost has once again risen.
comprehensive analysis
This week, the overall market remained relatively stable amidst fluctuations, but the rise in coal prices added uncertainty to the market. Specifically, upstream costs have increased by several hundred yuan, while downstream acceptance of product price increases is not high. It is expected that the game situation between upstream and downstream will intensify from this weekend to next week. However, due to the support of raw material costs, the space for price reduction is relatively limited. Overall, the magnesium market is expected to maintain a weak and stable consolidation trend in the near future, with prices fluctuating narrowly within the current price range.
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