Magnesium ingot market in early Jan., 2024
January 9, 2024
According to market research, the magnesium ingot market was relatively calm at the beginning of the week, with factory quotations fluctuating within a narrow range; The downstream demand market activity is still poor.
On the factory side, as the spot price gradually approaches the 20000 mark, although there has been a willingness to stabilize prices at several milestones, due to the continuous weak market demand, there has been no substantial improvement in transactions. The factory can only gradually lower the price for shipment, and the market transaction price is around 20100 yuan/ton. Some factories also ship at futures prices below 20000 yuan to recover funds.
In terms of demand, the overall demand in the magnesium market is weak, especially in the recent maritime transportation. The situation in the Red Sea has not shown any signs of improvement or easing, and there is a growing trend. Global shipping giant Maersk announced on the 5th that all of its ships will no longer pass through the Red Sea in the foreseeable future and warned customers to prepare for severe supply disruptions. In this situation, delayed booking and delayed shipment of foreign orders may continue to worsen the already weak market.
Generally speaking, the magnesium metal market is still weak in the near future. Although the factory has the desire to stabilize the price, but the demand side continues to be weak, the market stability lacks favorable support, and the price may slow down. It is expected that the supply and demand sides will still be in a game state this week, and the magnesium market is in a weak stalemate waiting to break through.