The domestic magnesium ingot market was relatively stable in the first half of this week, but prices remained weak and stable in the later part of the week. As of Friday, it is currently understood that mainstream factories in Fugu area offer prices in the range of 17800-18000 yuan/ton including tax in cash exchange; The price changes in other regional markets are also not significant.
Since the market opened in September, the magnesium ingot market has continued to operate steadily. Despite poor downstream demand, factories have a strong willingness to stabilize prices, and there are generally not many low-priced sources in the market, resulting in a stalemate between supply and demand. On Thursday of this week, it was heard that some factories in the market had slightly lowered their quotes to promote transactions. Some downstream buyers have entered the market to stock up, and the market transaction price is basically at 17700 yuan/ton including tax in cash exchange.
From the current supply-demand relationship, on the supply side: various factories have been insisting on stabilizing prices for some time. Faced with the recent cold market, some factories continue to stabilize prices and observe the market, while others adjust prices and ship according to order conditions in a timely manner to alleviate inventory pressure and recover capital needs. On the demand side: In the first half of this week, due to strong factory quotations and low purchasing enthusiasm from downstream customers, the magnesium market continued to have average transactions; In the later part of the week, with slight signs of market price loosening, some first-time customers are purchasing on demand, while others who are not in a hurry to replenish are still observing the market.
In summary, the magnesium ingot market is expected to remain stable and operate steadily in the short term. Given the overall low downstream procurement and the lack of strong demand support in the magnesium market, there will still be pressure on the market in the future. Considering the cost support and the approaching Mid Autumn Festival holiday, there are some rigid demands released after the adjustment of magnesium prices, and the decrease in magnesium prices is not significant. It is expected that the magnesium market will experience a narrow consolidation within the range. Observe the follow-up situation of demand in the future.
