According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province has slightly declined, with an average market price of 16466 yuan/ton at the end of the month and 17633 yuan/ton at the beginning of the month, a decrease of 6.62%.
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This month’s market analysis
Entering November 2024, the magnesium price market continues to decline amidst fluctuations. Although the production side intends to raise prices to maintain stability, limited demand has led to a continuous decline in magnesium prices. This month, influenced by multiple factors such as domestic and international economic situation, supply and demand relationship, and cost, magnesium prices are seeking a new equilibrium point amidst fluctuations.
Supply and demand side
Overall, the current situation of oversupply has not eased. Although the factory has the willingness to raise prices, due to the overall high inventory in the current supply side market, there is significant pressure on the factory to release inventory, resulting in some factories experiencing production losses. Market confidence is slightly negative, and magnesium ingot prices are under pressure to decline.
In terms of raw materials
Raw material ferrosilicon, in November, is in the traditional off-season of industry demand. Currently, most buyers have low purchasing enthusiasm and a certain degree of price pressure sentiment, and the domestic ferrosilicon spot market is mainly running weakly. According to the Commodity Market Analysis System of Shengyi Society, the market price of ferrosilicon (grade: FeSi75-B; particle size grade/mm: natural block) in Ningxia is between 6000-6200 yuan/ton, with an average market price of 6121 yuan/ton, a decrease of 0.83% from the beginning of the month.
The domestic price of raw material orchid charcoal did not fluctuate significantly in November. The bidding price of Shaanxi Coal Mine has slightly fallen by 12.8 yuan/ton, and against the backdrop of limited cost fluctuations, the blue charcoal market is currently operating steadily. At present, the main focus at the pithead is on destocking. Under the sluggish market demand, there has been no significant improvement in transportation in mining areas. Currently, a nationwide cold wave is approaching, but overall downstream inventory is still at a high level. Multiple parties are holding onto essential procurement, and terminal demand still needs to be further released. As of the 28th, the current price of Shenmu’s intermediate materials is 950-1020 yuan/ton, the price of small materials is 890-980 yuan/ton, and the mainstream price of coke surface is 630-650 yuan/ton, all of which are ex factory cash prices including tax.
Future forecast
The magnesium ingot market initially remained weak and stable before fluctuating, with prices showing a gradual downward trend. The adjustment of supply and demand relationship will also be an important factor in the fluctuation of magnesium prices. Under the pattern of oversupply in the market, there is still significant pressure on the supply side in the future. Pay attention to the price point of 16000. If there is a breakthrough, it is expected that there will be production stoppage on the production end.
| Gamma-PGA (gamma polyglutamic acid) |