According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province slightly declined this week (7.14-7.18), with an average market price of 16350 yuan/ton at the beginning of the week and 16262 yuan/ton at the end of the week, a decrease of 0.54%.
This week, the magnesium market showed a trend of first decreasing and then stabilizing. The mainstream quotation has been declining since last week, but when the price fell to 16300 yuan/ton, the downward resistance significantly increased, and it stopped falling and stabilized near the weekend.
Supply and demand side
On the supply side, due to the impact of extreme high temperatures, magnesium smelting enterprises are facing numerous difficulties in resuming work and production, while production costs have also increased to a certain extent. In this situation, companies generally have a strong willingness to raise prices, and only a few companies with tight cash flow have made small price reductions in the futures market. Recently, as market prices have stabilized, the market’s expectations for the future have become more optimistic.
On the demand side, downstream application companies have shown a high acceptance of current prices. However, some trading companies have a strong willingness to lower prices due to accepting orders at lower prices in the early stages.
Raw material end
The current coal market prices remain basically stable, while the price of blue charcoal has seen a certain degree of decline, and the price of ferrosilicon remains stable without fluctuations. However, due to the combined impact of high temperature weather factors, the overall production cost still shows an upward trend.
comprehensive analysis
Recently, it is expected that magnesium prices will show a slight upward trend, and the price fluctuation range will further tighten and narrow.
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