This week, the domestic magnesium ingot market showed a trend of weakening and consolidation, with prices fluctuating narrowly in the game between supply and demand. The overall trend is not clear, and the market has a strong wait-and-see atmosphere. As of Friday, the mainstream factories in Fugu area have adjusted their quotations to 16500 yuan/ton including tax, a cumulative decrease of 200 yuan/ton compared to last Friday. Prices in other regional markets also fluctuated slightly within the range.
Looking back at this week, the market was relatively flat in the first half, with mainstream market prices remaining relatively stable, and only some factories implementing small price reductions to promote transactions; But as we entered the mid to late week, the market gradually adjusted its shipping strategy, especially on Thursday, mainstream factories in the Fugu area attracted downstream customers by offering discounts, which led to an increase in market inquiry activity. According to feedback, there have been some transactions in the price range of 16400-16450 yuan/ton for tax inclusive spot exchange in the market. Afterwards, mainstream factories stabilized their quotations, and the market's low-priced supply quickly decreased. It was difficult to find a price of 16450 yuan/ton in the Fugu area on Friday.
Supply and demand game: mutual exploration in stalemate, demand dominates market rhythm.
On the supply side, although factories have a strong overall price stability mentality, some magnesium companies have chosen flexible profit sharing strategies to release inventory due to transaction pressure, attempting to break the deadlock; On the demand side, downstream customers' procurement is mainly based on rigid demand, and selective replenishment is carried out during the factory price reduction stage. Once the price rises, it will return to a wait-and-see state again. The supply and demand sides are always in a stalemate game stage, and the market lacks sustained purchasing power.
Overall, it is expected that there will be no substantial improvement in the supply and demand pattern of the magnesium market next week, and the market situation is likely to continue the stable operation of current prices. As the May Day holiday approaches, market attention is focused on the stocking situation of downstream buyers before the holiday.
