This week, the domestic magnesium market showed a steady state trend after a first rise. In the first half of this week, market prices continued to rise; Magnesium prices remained relatively stable in the later part of the week. Today, it was learned that the mainstream factory prices in the Fugu area are mainly based on a spot exchange rate of 18500 yuan/ton, including tax. The prices in other regional markets are also relatively stable.
Looking back at this week's market: At the beginning of the week, the price of magnesium was supported by the upward trend of raw material silicon iron prices, greatly boosting market confidence. The quotations of various magnesium enterprises in the main production areas were adjusted upwards. Subsequently, as market prices continued to rise, downstream customers were influenced by the sentiment of "buying up instead of buying down". Some essential customers entered the market to purchase, and after a transaction was made at a price of 18500-18600 yuan/ton, some factory prices continued to rise to 18700 yuan/ton. According to the market, there has been a significant slowdown in market transactions in the past two days, and customer acceptance of high prices is not high. By Friday, the mainstream market quotation had slightly adjusted back to a spot exchange rate of 18500 yuan/ton including tax, which remained unchanged from Monday's quotation.
At present, the supply and demand side of the market is basically stable. On the supply side, factory quotations are generally stable, while the cost side still has support. The space for market price reduction is limited; On the demand side: Downstream customers and intermediaries mainly rely on observing market trends, and are more cautious when placing orders and purchasing. The supply and demand sides are somewhat deadlocked in a game.
In summary, the magnesium ingot market may continue to maintain overall stability in the short term, with narrow fluctuations within the range. Continue to monitor the follow-up of weekend two-day market transactions and the trend of the raw material market.
