This week, the domestic magnesium ingot market showed a trend of "first suppression and then rise", with significant price fluctuations. In the first half of this week, the price of magnesium ingots remained weakly stable and consolidated within the range. On Wednesday, mainstream factories in Fugu area adjusted their quotes back to 16300 yuan/ton including tax in spot exchange; In the mid to late week, market inquiries and purchases gradually increased, and prices quickly stabilized and rebounded. As of Friday, the prices of mainstream factories in Fugu area have risen to 16700-16800 yuan/ton including tax in cash exchange. An increase of 400-500 yuan/ton compared to this week's low point. Drive the synchronous recovery of market conditions in other regions.
Driving factors for the current market price rebound
1. Supply side: Low inventory supports high prices
Recently, the overall inventory of factories has been at a low level, which has made magnesium companies optimistic about market expectations and firm in their quotations. In the mid to late week, after some factories tentatively raised prices, the market acceptance was good, further strengthening the confidence of factories to raise prices.
2. Demand side: Procurement and emotional changes
Downstream buyers gradually release demand after the price drops to a psychological level. On the one hand, essential customers maintain stable procurement; On the other hand, the mentality of "buying up instead of buying down" has prompted intermediaries and downstream customers to accelerate their stocking pace, resulting in an increase in market inquiry activity. With the improvement of transactions, the factory raised its quotation accordingly.
In summary, it is expected that the magnesium ingot market will continue to operate steadily in the near future. In the short term, supply side factories are supported by low spot inventory, and their willingness to raise prices is relatively firm; On the demand side, the market is still dominated by rigid replenishment, and as prices quickly rise, downstream markets are becoming more cautious. Continue to monitor the actual transaction follow-up of the two-day market over the weekend.
