Looking back at this week, the domestic magnesium ingot market trend is like riding a roller coaster, with ups and downs. The first half of the market showed a trend of weakening and correction, with prices reaching a recent low of 15700 yuan/ton including tax in spot exchange; On Wednesday afternoon, the market began to rebound strongly and prices continued to rise. As of this Friday, mainstream factories in Fugu area have quoted a spot exchange rate of 16200-16300 yuan/ton including tax. Prices in other regional markets have also increased accordingly.
At the beginning of this week, the magnesium ingot market price weakened and rebounded. Affected by multiple factors, market prices have gradually declined, with magnesium prices dropping to 15700 yuan/ton including tax in cash on Wednesday morning. The decline in prices has caused uncertainty among all parties in the market regarding the subsequent market situation, and many downstream enterprises are adopting a cautious and wait-and-see attitude.
The market's twists and turns can sometimes be fleeting. On Wednesday afternoon, under the fermentation of an environmental news, the magnesium ingot market quickly stabilized and rebounded, with prices quickly rising to 16000 yuan/ton. This sudden reversal has stimulated the enthusiasm of some factories to stock up and actively enter the market for procurement. Afterwards, the upward trend in the market became increasingly evident, with mainstream factory quotes rising to 16200 yuan/ton on Thursday. Stimulated by the continuous rise in prices, market activity has gradually increased. It is reported that there have been transactions in the market at various price stages of 16000 to 16200 yuan/ton including tax. Feedback shows that the transaction situation in the main production areas has been good recently, and market confidence has been restored.
As of Friday, the mainstream factories in Fugu area have continued to raise their quotations to 16300 yuan/ton including tax in cash exchange. Some factories can negotiate a price of 16200 yuan/ton for shipment, while others are temporarily not shipping. According to market participants' feedback, spot resources have become tight, and some factories have low inventory. This change in supply and demand relationship also provides favorable support for magnesium prices to stop falling and rise.
In summary, from the current supply and demand perspective, the supply side market is gradually tightening, and there is not much spot inventory in various factories, which forms strong support for magnesium prices. Factories are reluctant to sell at low prices, and their quotations are mainly firm; On the demand side, downstream enterprises are affected by the mentality of "buying up, not buying down", and the activity of inquiry and procurement has increased, especially after prices hit bottom and rebounded. Some manufacturers are worried that prices will continue to rise and have increased their procurement volume, driving market demand to improve.
It is expected that the magnesium ingot market will show a strong and positive trend in the near future. The current rise in magnesium prices is influenced by multiple factors, and the subsequent market trend needs to be monitored:
① downstream market transaction follow-up situation;
② supply side production reduction and restriction measures;
③ raw material market dynamics.
