Entering this Wednesday, the domestic magnesium market continued to weaken. Up to now, 99.9% of the mainstream factories in the Fugu area of magnesium ingots have lowered their quotations to 30,000 yuan/ton including tax. Factories in other regions also adjusted their prices accordingly.
The recent magnesium market situation can be described as indescribable, like a waterfall "flying down three thousand feet".
Supply side: The overall production of upstream factories has been stable recently, the market inventory has been accumulating and increasing, and the inventory pressure of various factories has become more and more prominent. Demand side: Affected by the epidemic and the bad environment, the domestic downstream terminal demand has been difficult to increase since the beginning of this year, and customers basically maintain just-in-demand procurement. The demand is not strong, the inventory is increasing, and the uncertainty of the current environmental protection policy is superimposed. In the first half of this week, the market has fallen sharply under pressure. Whether the follow-up market can stick to the 30,000 mark remains to be paid attention to the actual downstream procurement situation.
From the perspective of supply and demand, the pattern of oversupply continues, and it is difficult to make a big improvement for the time being. At the same time, policy news has gradually weakened the support factors for magnesium prices. At present, in order to facilitate transactions and reduce inventory pressure, the supply-side factories mainly adopt flexible sales on the go. It is expected that in the short term, the magnesium market may continue its weak consolidation operation.