According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province slightly decreased this week (8.18-8.22), with an average market price of 17437 yuan/ton at the beginning of the week and 17400 yuan/ton at the end of the week, a decrease of 0.22%.
This week, the magnesium market experienced a brief and slight consolidation before gradually recovering, but overall prices have slightly decreased. The market supply and demand relationship is balanced, and the overall price remains stable.
Supply and demand side
In terms of supply, in the magnesium smelting industry, due to the current low inventory of enterprises, when magnesium prices experience a certain degree of decline, enterprises adopt different market response strategies. Among them, some companies choose to follow the market and ship in small quantities at current lower market prices to recoup funds or maintain market participation; On the other hand, some companies adhere to a pricing strategy based on optimistic expectations of future market trends or cost control considerations, choosing to stop shipping to avoid low-priced sales. The differentiation of this market behavior has led to significant resistance in the downward trend of magnesium prices, making it difficult to sustain the decline. At the same time, with the gradual increase in the number of market purchases, the supporting role of the demand side has become apparent, driving the rapid recovery of magnesium prices.
In terms of demand, the downstream market experienced a relatively concentrated procurement period last week, and the number of orders placed this week has decreased. The market trading atmosphere is slightly quiet, but as the weekend approaches, the market trading situation has rebounded.
Raw material end
Recently, the market has shown that coal prices have remained relatively stable, while orchid charcoal prices have slightly increased, silicon iron prices have remained stable, and overall costs have slightly decreased.
comprehensive analysis
During this year’s overseas summer break, the market continued to show a stable to strong trend, with prices gradually recovering to a relatively reasonable range and overall fluctuations being relatively small. This phenomenon indicates that the supply and demand pattern of the market has undergone fundamental changes, and the demand scale of the domestic market is sufficient to support the current market situation. Based on this, it is expected that the market will continue to maintain a stable tone and maintain a strong operating trend in the future.
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