This week, the domestic magnesium ingot market quickly rose in the first half of the week. From Monday to Wednesday, the mainstream factories in Fugu area once climbed to the price range of 15700-15800 yuan/ton including tax, which was about 500 yuan/ton higher than last Friday; The market entered a stable period in the later part of the week, and prices remained stable. Today, mainstream factories in Fugu area quoted 15700 yuan/ton in cash including tax. At present, the game between supply and demand is intensifying, and there is a strong wait-and-see sentiment in the market.
In the second week of March, the magnesium ingot market showed a trend of rapid recovery followed by stable operation. Under the combined effects of market dynamics, supply and demand relationships, cost factors, and other factors, magnesium prices have formed a unique price curve - rising first and then stabilizing. Both the supply and demand sides are closely monitoring this change and adjusting their production, shipment, inquiry, and procurement strategies in a timely manner.
·Factors contributing to the rapid rebound of prices
1.The supply side has undergone some changes compared to the previous period: on the one hand, the factory's supply in the early stage has been partially digested in the near future, and inventory pressure is not significant. At the same time, some manufacturers have implemented production reduction and restriction measures, further reducing the market supply. When the supply decreases and demand remains relatively stable, it naturally drives prices up.
2.Raw material support: The recent slight increase in coal prices and stable operation of ferrosilicon prices have also provided some support for magnesium ingot prices.
3.Changes on the demand side: Downstream customers and intermediate buyers are influenced by the mentality of "buying up, not buying down". In the early stages of the rise in magnesium prices, some buyers have increased their enthusiasm for stocking up in the market, which has also to some extent increased market activity.
·Market situation in late week
At present, the market supply and demand sides are in a stalemate game state. The supply side factories are still strongly willing to stabilize prices due to low market inventory and cost support; However, downstream enterprises and intermediaries on the demand side have limited acceptance of high market prices and low purchasing enthusiasm. Recently, market inquiries and purchases have significantly slowed down, and customers have become more cautious. Some factories have expressed willingness to negotiate based on actual orders.
In summary, if there are no significant new factors in the short term, and there is no significant improvement in the demand side or further changes in the supply side, it is expected that the price of magnesium ingots will continue to maintain the current stable trend. We will continue to monitor changes in supply and demand, as well as the dynamics of the raw material market.
