Market analysis for this week
| povidone Iodine |
According to the monitoring of Business Society, as of the 8th, the average price of magnesium ingots in the domestic market was 24333.33 yuan/ton, an increase of 6.88% on a weekly basis. As the export shipping schedule approaches, the market transaction atmosphere is good, and some factories in the Fugu region continue to suspend production for a longer time. Inventory pressure is not high, and manufacturers’ reluctance to sell at high prices has further strengthened. By Friday, the mainstream factories in the Fugu region are offering a spot exchange rate of 24300-24500 yuan/ton, including tax.
In terms of supply and demand
In terms of supply, some domestic magnesium factories have not yet resumed production, with low inventory and little pressure on manufacturers to ship. Some factories need to schedule production. In terms of demand, the export shipping schedule is approaching, and due to the mentality of “buying up instead of buying down”, downstream companies are actively entering the market for inquiry and procurement this week.
In terms of raw materials
| Azodicarbonamide (AC foaming Agent) |
This week, the quotation for ferrosilicon in the Ningxia region is around 6850-7000 yuan/ton, with an average market price of 6967 yuan/ton, up 1.39%. The orchid charcoal market is relatively strong, with some enterprises experiencing price increases ranging from 60 to 100 yuan/ton. Under the favorable support of tight spot resources of ferrosilicon, with many manufacturers mainly focusing on production scheduling, as well as the strengthening of the cost side and the gradual concentration of bidding and procurement from steel mills, the willingness of spot factories to increase prices is not decreasing. It is expected that the ferrosilicon spot market may operate stronger in the short term.
Future Market Forecast
Overall, the trading activity of the magnesium ingot market has increased compared to the previous period, coupled with the strong operation of raw materials such as ferrosilicon. There is some support on the cost side, and with a decrease in spot inventory of magnesium factories, many manufacturers are unwilling to ship at low prices, with a clear understanding of price competition and reluctance to sell. However, at present, the transaction volume in the magnesium market is gradually slowing down, and downstream resistance to high prices is becoming stronger. It is expected that the short-term narrow range consolidation of magnesium prices will be the main trend.
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