This week, the magnesium ingot market showed a trend of first stabilizing and then suppressing. At the beginning of the week, the overall market price remained stable, with mainstream factories in Fugu area stabilizing at 16000 yuan/ton including tax in foreign exchange. In the middle and later stages of the week, some factories began to loosen and adjust their prices, and the actual transaction price in the market gradually fell to 15800-15900 yuan/ton including tax in foreign exchange. The prices in other regional markets have not changed much temporarily.
From the current supply and demand situation analysis:
On the supply side, the overall production capacity of the factory will remain stable after the year, but due to the continued weak market demand, manufacturers' inventory continues to accumulate; And there are reports that the storage policy will come to a temporary end. In the absence of obvious positive drivers, the market's ability to raise prices is gradually weakening, and factories in the main production areas are more willing to proactively lower prices and ship goods.
On the demand side, although downstream enterprises resumed work after the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) Festival, the demand recovery was not as expected. Customers mainly consumed inventory before the Spring Festival, and a small amount of just needed to replenish inventory. Moreover, there was an obvious feeling of price cut and price comparison, and the overall release of market demand was limited.
Overall, there is a lack of favorable factors affecting the market in the short term, and the supply-demand pattern may be difficult to reverse. Downstream customers and traders are mainly cautious and cautious, or may postpone their procurement plans, waiting for magnesium prices to further bottom out. It is expected that the magnesium market prices will continue to operate weakly and consolidate in the near future, with prices fluctuating narrowly within the range.
