Magnesium Market in May , 2023
May 31, 2023
On the last working day of May, the magnesium ingot market showed signs of fatigue, and in recent days, the market has been affected by the continuous downturn in downstream demand, with factory quotations constantly under pressure and downward exploration. According to the feedback, with the rapid decline of the market price in the near future, some low price foreign orders and some domestic goods just need to enter the market to stock up in the early stage, and the market turnover has slightly improved compared with the early stage. The recent transaction price is basically within the range of 21000-21500 yuan/ton of spot exchange including tax.
Throughout May, the magnesium ingot market experienced a "fast up and fast down trend". In the first half of the market, the price of magnesium ingots quickly rose to 28000 yuan/ton due to the rectification policy of Fugu Lancan. However, due to the continued weakness of downstream demand, slow market transactions, and lack of price support, the magnesium market entered a "downward channel". In the past two weeks, the market quotation has been falling again and again, and the overall willingness of downstream customers to receive goods is not strong, which is still not optimistic about the future market situation.
Overall, it is difficult to reverse the market supply and demand pattern in the short term, and downstream procurement still focuses on just in demand stocking. As the market price continues to fall, the traders' procurement is also relatively negative, and the market is cautious, and the recent price of bulk raw materials continues to decline, the prices of coal and ferrosilicon have declined to a certain extent, and the cost support is also weakening. Therefore, it is expected that the magnesium ingot market will continue to operate in a weak consolidation trend in the near future.