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 16266 yuan/ton at the end of the month and 16466 yuan/ton at the beginning of the month, a decrease of 1.21%.
| Gamma-PGA (gamma polyglutamic acid) |
This month’s market analysis
In the last month of 2024, the magnesium market is still in a downward consolidation phase. As of today, the ex factory price of Fugu magnesium ingots remains between 16000-16300 yuan/ton. In the last week, magnesium prices remained stable, bottoming out and stabilizing.
Supply and demand side
On the one hand, as Christmas approaches, the purchasing willingness of foreign customers decreases, coupled with existing inventory pressure, the market presents a certain degree of loose supply and demand. On the other hand, the domestic market still has strong demand support, especially with the development of industries such as new energy vehicles and aerospace. The application scenarios of magnesium continue to expand, and factories have a clear willingness to raise prices under cost pressure.
In addition, the weakness of the raw material market, especially under the price fluctuations of metals closely related to the magnesium market such as aluminum and zinc, still puts competitive pressure on magnesium. At the same time, the uncertainty of the global economic recovery rate has put pressure on many magnesium production companies to operate at a loss, forcing them to remain cautious in pricing.
In terms of raw materials
Raw material ferrosilicon, the spot market for ferrosilicon is not volatile, and the progress of steel procurement is slow. Under the influence of the emotional season, the enthusiasm for retail inquiries and purchases is not high, and the market demand is mainly based on essential needs. According to the Commodity Market Analysis System of Shengyi Society, on December 23rd, ferrosilicon (brand: FeSi75～B; The market price for grain size grade/mm: natural block in Ningxia region ranges from 5950-6100 yuan/ton, with an average market price of 6070 yuan/ton.
Raw material blue charcoal, the national blue charcoal market price is weak, downstream mainstream calcium carbide enterprises have lowered the purchase price of small and medium-sized blue charcoal materials by 50 yuan/ton, and the market has gradually implemented the reduction. There are some low-priced sources of goods, and the coke face has also experienced a 10-30% reduction in cost. As of December 20th, the mainstream prices for small and medium-sized materials in the Shenmu market are 745-870 yuan/ton, and 560-640 yuan/ton for coke surface; The mainstream prices for small and medium-sized materials in the Fugu market are 800-950 yuan/ton, and 600-700 yuan/ton for coke surface; The mainstream price of coke in the Zhongwei market is 600 yuan/ton; Shizuishan market mixed material costs 620 yuan/ton; The price of small and medium-sized materials in the Ordos market is 785-850 yuan/ton, and the price of coke surface is 650-750 yuan/ton; The price of small and medium-sized materials in Hohhot market is 860-870 yuan/ton, and the price of coke surface is 720 yuan/ton; The price of small and medium-sized materials in Hami market is 920-1050 yuan/ton, coke surface is 380-1050 yuan/ton, and mixed materials are 220-360 yuan/ton; The price of small and medium-sized materials in Changji market is 850-1220 yuan/ton, and the price of coke surface is 550 yuan/ton, all of which are ex factory cash prices including tax; The prices of small and medium-sized materials such as blue charcoal at Tianjin Port are 1050-1160 yuan/ton, and coke face is 835-950 yuan/ton, both of which are cash inclusive of taxes at the port closing price; Yumen Blue Charcoal currently has a small material price of 280-550 yuan/ton, a coke surface price of 395-690 yuan/ton, a coke powder price of 570-590 yuan/ton, and a rice material price of 425-450 yuan/ton, all of which are cash inclusive of tax at the factory price.
Future forecast
In summary, although the magnesium market is currently facing difficulties in falling further due to the cost line, there has not been a significant increase in demand. We are gradually stabilizing, but we still need to closely monitor market dynamics, especially supply chain, cost changes, and the recovery of international market demand.
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