According to the monitoring of the commodity market analysis system of Shengyi Society, the magnesium ingot market in Shaanxi Province fell this week (12.1-12.6), with an average market price of 16466 yuan/ton at the beginning of the week and 16366 yuan/ton at the end of the week, a decrease of 0.61%.
This week’s market analysis
Since early December, the magnesium ingot market has continued to consolidate weakly and remain cautious. The market is influenced by the mentality of “buying up, not buying down”, and downstream buyers are more cautious. Starting this week, magnesium prices have continued their downward trend from last month, and as of the end of this week, prices have shown a stable trend.
Production end
The further decline in magnesium prices has made production and operation more difficult for factories. Most factories are unwilling to make losses in transactions, and the situation of production stoppage and reduction has intensified. Market transactions have further shrunk, and some manufacturers with high financial pressure have shipped in small quantities. Some factories have stopped production on the news side.
Supply and demand side
At present, it has become the norm for supply to exceed demand, and it is difficult to reverse in the short term. Due to the fact that production costs are inverted, some factories have stopped production and reduced output. In addition, there were rumors of a “reserve purchase” over the weekend, which had a slight impact on stopping the decline of magnesium prices.
comprehensive analysis
The sustained decline in magnesium prices in the short term has had an impact on confidence within the magnesium metal industry. In the short term, the supply and demand sides may be in a stalemate game, and the industry sentiment is mainly cautious and wait-and-see. The expected trend next week is mainly consolidation. More attention should be paid to the situation of factory shutdown.
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