This week (1.26-1.30), the magnesium ingot market in Shaanxi region rose, with an average market price of 16350 yuan/ton at the beginning of the week and 16750 yuan/ton at the end of the week, an increase of 2.45%.
Since the beginning of this week, the prices of related products have continued to show an upward trend due to factors such as changes in market supply and demand and cost push. From a regional perspective, the market performance in Shaanxi region is relatively unique. Some companies choose not to provide external quotations due to their own sales strategies, while others have raised their quotations to 17000 yuan/ton. In addition, as the Spring Festival approaches, many enterprises in Shaanxi region have explicitly stated that they will suspend shipments before the Spring Festival based on holiday arrangements and inventory management factors.
supply side
| Gamma-PGA (gamma polyglutamic acid) |
Shaanxi and other major domestic magnesium production areas maintain stable output, and the overall supply capacity has not shown significant fluctuations. At the same time, as the Spring Festival approaches, the inventory of magnesium ingots that can be circulated in the market continues to decline, leading to a tightening of supply in the circulation process. In this context, magnesium smelting enterprises generally adopt a stable price strategy based on cost support and changes in supply and demand patterns, maintaining a strong external quotation trend, and the market price system shows strong resistance to decline.
Demand side:
Given that the meteorological department predicts that there will be continuous snowfall in the magnesium producing areas in the future, and the traditional peak consumption season of Spring Festival is approaching, downstream industries have gradually launched pre holiday stocking plans based on considerations of logistics disruptions and rigid consumption demand during the holiday period that may be caused by weather factors. With the advancement of the stocking cycle, the market procurement activity has significantly increased, and the trading willingness of both supply and demand sides continues to strengthen, driving the overall transaction situation to show a steady recovery trend.
Cost side:
Recently, due to multiple factors such as changes in market supply and demand, as well as fluctuations in international energy prices, coal prices have continued to rise. This change directly leads to a significant increase in production costs for industries that rely mainly on coal as their energy or raw material. At the same time, the market prices of key raw materials such as blue charcoal, ferrosilicon, and dolomite remained relatively stable and did not adjust significantly with fluctuations in coal prices, thus forming a relatively solid support in the cost structure and effectively buffering some of the cost pressures caused by the rise in coal prices.
comprehensive analysis
Recently, magnesium prices have shown significant fluctuations, but the overall trend is positive. As the Spring Festival approaches, downstream stockpiling orders are gradually being released. At the same time, the long-term demand for downstream magnesium alloy applications is also accelerating. Based on this, it is expected that the market will continue to develop steadily and positively before the Spring Festival.
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