For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a challenging period for Magnesium Alloy Ingot pricing, with notable declines impacting the market. Several significant factors influenced this downturn. Supply dynamics played a crucial role, with increased availability and reduced demand exerting pressure on prices. Freight transportation experienced mixed results, further complicating the supply chain. Demand for metals softened, particularly in the automotive sector, where vehicle sales declined, reflecting broader economic challenges such as high interest rates. However, the construction sector showed resilience, indicating sustained demand for construction-related commodities.
In the USA, the market saw the most significant price changes, with a recorded a decrease from the previous quarter. Overall trends indicated a negative sentiment, with prices declining by 0.5% between the first and second half of the quarter.
Despite some fluctuations, the quarter ended with Magnesium Alloy Ingot priced at USD 3240/MT CFR Houston. Plant shutdowns during this period added to the disruption in the market, contributing to the overall decreasing pricing environment.
APAC
In Q3 2024, the APAC region witnessed a challenging period for Magnesium Alloy Ingot pricing, marked by a significant decrease in prices. This decline was influenced by a multitude of factors, including oversupply, weakened demand, and global economic uncertainties. Manufacturers faced intense competition, particularly from low-cost imports, which added pressure on pricing dynamics. Additionally, disruptions in supply chains and reduced industrial activities played a role in driving prices down.
Specifically in China, the market experienced the most substantial price changes, reflecting an overall bearish trend. The quarter saw a decrease from the previous quarter, with prices continuing to decline. Notably, there was a 4% drop in prices between the first and second half of the quarter alone. Due to the market is currently navigating through a complex landscape of rising supply but tepid demand, keeping prices lower.
Despite some resilience in the face of challenges, the quarter ended with Magnesium Alloy Ingot (AZ91D) priced at USD 2904/MT FOB Tianjin, underlining the persisting negative sentiment in the pricing environment.
Europe
In Q3 2024, the Europe Region experienced a decrease in pricing environment for Magnesium Alloy Ingot. Additionally, the market for Magnesium Alloy Ingot was influenced by various factors, including supply constraints, demand fluctuations, and regulatory changes. These dynamics led to prices decline throughout the quarter.
However, the Netherlands stood out with the most significant price changes. Moreover, the market in the Netherlands saw fluctuations driven by high inventory levels, cautious buying behavior, and reduced activity in the construction and automotive sectors. Due to these challenges, the market reflected bearish sentiment. Overall trends indicated a correlation between supply and demand factors, with seasonality playing a role in price movements. The quarter recorded a 2% decrease from the previous quarter, with no significant shift between the first and second half of the quarter.
The quarter-ending price for Magnesium Alloy Ingot (AZ91D) CFR Hamburg in the Netherlands was USD 2990/MT, reflecting the stable pricing environment prevailing in the region. No plant shutdowns or disruptions were reported during the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the Magnesium Alloy Ingot market in North America experienced predominantly stable pricing dynamics, influenced by a confluence of market factors. The quarter has been marked by a balanced supply-demand scenario, bolstered by consistent production levels and moderate economic activities. Although the global industrial metal landscape faced sporadic disruptions, such as intermittent plant shutdowns at key facilities, the Magnesium Alloy Ingot market remained largely insulated. Contributing to the stable pricing was the absence of significant supply constraints, with ample stock availability and relatively smooth logistics maintaining equilibrium.
In the USA, the Magnesium Alloy Ingot (AZ91D) market exhibited noticeable price changes, reflecting underlying trends and seasonal patterns. Despite a sequential decline of 7% from the previous quarter, the pricing environment stabilized over the quarter, ending with a negligible overall price variation. This stability was largely attributed to balanced market activities and the absence of extreme economic fluctuations. Additionally, moderate to high demand from the automotive sector played a crucial role in sustaining prices, despite the broader manufacturing sector showing signs of deceleration.
The quarter recorded a stable sentiment, with the pricing environment being neither significantly positive nor negative. The latest quarter-ending price for Magnesium Alloy Ingot (AZ91D) CFR HOUSTON in the USA stood at USD 3307/MT, highlighting a consistent market outlook amidst a backdrop of stable supply-demand fundamentals and moderate economic activities.
APAC
In Q2 2024, the APAC region experienced a declining trend in Magnesium Alloy Ingot prices, influenced by several key factors. Market prices were pressured by weak demand fundamentals, driven by high ocean freight costs that deterred overseas buyers and sluggish economic conditions domestically. The supply side remained stable but witnessed fluctuations due to rotational maintenance and production adjustments in response to squeezed profit margins and rising raw material costs. Notably, the quarter saw increased production levels post-maintenance, although this did not translate into sustained demand recovery.
China, a significant player in the Magnesium Alloy Ingot market, observed pronounced price changes. The country's magnesium alloy production increased year-over-year due to improved downstream processing activities and full-capacity operations at large manufacturers. However, demand challenges persisted as high aluminum prices and economic uncertainties dampened market sentiment. Seasonal factors, including the impact of the monsoon season and fluctuations in mining activities, further influenced price trends.
Compared to the previous quarter, prices decreased by 1%, reflecting a consistent bearish sentiment.
Overall, the pricing environment in Q2 2024 was negative, culminating in a quarter-ending price of USD 3268/MT for Magnesium Alloy Ingot (AZ91D) FOB Tianjin in China. The combination of stable supply, low demand, and economic uncertainties created a challenging market landscape, with significant price declines characterizing the quarter.
Europe
In Q2 2024, the European market for Magnesium Alloy Ingot experienced a significant downturn, reflecting a negative pricing environment. Multiple factors contributed to this decline, including rising inflation, regulatory changes, and fluctuating energy costs. The enactment of the EU Critical Raw Materials Act (CRMA) impacted supply dynamics by setting production and recycling benchmarks, which, despite their intention to secure material availability, created uncertainties and disruptions in the market. Additionally, rising alloy surcharges and volatile energy prices further exacerbated the situation, leading to higher production costs and decreased profitability.
In Netherlands, the most significant price adjustments were observed, underscoring a pronounced declining trend. The Dutch market faced a challenging quarter with historical high-interest rates by the European Central Bank, which restrained demand across sectors. This period also saw disruptions such as Thyssenkrupp's reduction of production capacity, which added to supply chain strains. Despite initial optimistic expectations, the lack of significant manufacturing and construction activity, coupled with low automotive sector performance, contributed to the negative sentiment.
Overall, the pricing context for Magnesium Alloy Ingot in Q2 2024 was adverse, with the environment reflecting heightened economic pressures and supply chain disruptions. The quarter ended with a price of USD 2994/MT CFR Rotterdam, marking a decline of 12% from the previous quarter. The persistent negative sentiment was evident as market participants navigated through a complex landscape of regulatory changes, economic challenges, and fluctuating demand, ultimately driving prices downward.
For the Quarter Ending March 2024
North America
The North American market for Magnesium Alloy Ingot in Q1 2024 has experienced a mixed pricing environment. Overall, prices have been stable, with some fluctuations observed throughout the quarter. Various factors have influenced market prices during this period. In the broader North American region, factors such as ample supply and stable demand have contributed to the stable pricing environment. Despite stable demand, the construction market has been bearish, primarily due to winter dullness and low domestic and international demand.
Specifically in the USA, the pricing situation for Magnesium Alloy Ingot has seen some changes. Prices started the quarter on a bearish note, with a decline of 1% in February. This decline can be attributed to a combination of factors including high inflation, which put pressure on consumers, and a lack of significant growth in automotive sales. Looking at the overall trend, prices have remained stable with marginal fluctuations expected. However, it is anticipated that prices will ease down in March due to a decline in domestic demand. Despite the bearish start.
In terms of seasonality, the impact of winter storms has started to fade, which has contributed to a more stable supply situation. Additionally, the inflationary pressure on consumers has increased slightly from January to February, further influencing pricing. In conclusion, the pricing environment for Magnesium Alloy Ingot in the North American region during Q1 2024 has been overall stable, with some bearish tendencies. Factors such as supply stability, stable demand, and inflationary pressure have influenced market prices. The latest quarter-ending price for Magnesium Alloy Ingot (AZ91D) CFR Houston in the USA is USD 3540/MT.
APAC
The pricing environment for Magnesium Alloy Ingot in the APAC region during Q1 2024 has been largely negative, with prices experiencing significant fluctuations. Various factors have influenced market prices, including low demand from domestic and international buyers, challenges in procuring raw materials, and high inventory levels. These factors have led to a balanced supply situation, with stable supplies of the product. China has seen the maximum price changes for Magnesium Alloy Ingot. The domestic market in China has been impacted by low demand from downstream industries, resulting in decreased prices. Additionally, the country's key sectors, such as construction and automotive, have shown signs of deterioration, further affecting pricing dynamics. The Purchasing Managers' Index (PMI) for China remained below 50, indicating a dull demand environment. Looking at the overall trends and seasonality, prices have sustained a downtrend during Q1 2024. Overall, the pricing environment for Magnesium Alloy Ingot in the APAC region has been negative, reflecting the challenges faced by the industry due to low demand and supply chain disruptions.
Europe
The pricing environment for Magnesium Alloy Ingot in the European region during Q1 2024 has been decline. Factors such as the struggling economy and low economic activities have influenced market prices. The producer prices index in the region has been consistently declining, driven by lower energy prices. In the Netherlands, the pricing situation for Magnesium Alloy Ingot has also been bearish. Supply has remained stable, with ample product availability to meet both domestic and international demand. The automotive market has shown improvement, with increased new car registrations, but the downstream construction sector has remained dull, impacting pricing dynamics. Looking at overall trends and seasonality, there has been a decline in prices compared to the previous quarter in 2024. However, the latest quarter-ending price for Magnesium Alloy Ingot (AZ91D) CFR Rotterdam in the Netherlands is USD 3380/MT. In summary, the pricing environment for Magnesium Alloy Ingot in the European region during Q1 2024 has been largely negative, with stable supply and demand dynamics. Factors such as the struggling economy and low economic activities have influenced market prices, but there have been positive developments in the export market. Overall, prices have shown a marginal decline, but there is potential for a positive price revision in the coming months.
For the Quarter Ending December 2023
North America
In the intricate tapestry of Q4 2023, the Magnesium Alloy Ingot market in North America unfolded with distinctive nuances. Notably, no reported plant shutdowns underscored the sector's resilience and unwavering operational continuity. A closer inspection of the USA, the pivotal player in pricing dynamics, unveiled three paramount factors steering the market's course.
Analysing trend, seasonality, and correlation patterns provided profound insights into the underlying fabric of pricing dynamics, transcending superficial interpretations. Over the past year, Magnesium Alloy Ingot (AZ91D) CFR HOUSTON in the USA demonstrated a sluggish pricing trajectory, indicating a market characterized by minimal year-on-year fluctuations.
The subtle percentage adjustment of -1.7% from the preceding quarter mirrored the market's adaptive equilibrium amidst shifting forces. Delving further into the intricacies, discernible pricing disparities between the initial and latter halves of the quarter came to light. Culminating this exploration is the quarter-ending price of Magnesium Alloy Ingot (AZ91D) USD 3566/MT CFR HOUSTON in the USA, this encapsulates the nuanced interplay of factors shaping the North American Magnesium Alloy Ingot market in the conclusive quarter of 2023.
APAC
Amidst the nuanced landscape of Q4 2023, the Magnesium Alloy Ingot sector in the APAC region witnessed a confluence of forces shaping its trajectory. Significantly, no plant shutdowns were reported, underscoring the sector's deteriorating operational continuity. A microscopic lens on China, the focal point of pricing dynamics, revealed three pivotal influencers steering the market. Intricate analyses of trend, seasonality, and correlation patterns provided a nuanced understanding of the pricing narrative, transcending mere statistical interpretations. Over the past year, Magnesium Alloy Ingot (AZ91D) FOB Tianjin in China exhibited oscillating price trend, reflecting a market exhibiting year-on-year fluctuations. In a testament to market dynamics, a subtle percentage adjustment of -2% from the preceding quarter highlighted the sector's adaptive equilibrium. Further granularity unravelled divergent pricing patterns in the initial and latter halves of the quarter. Culminating this exploration is the quarter-ending price of Magnesium Alloy Ingot (AZ91D) FOB Tianjin in China, standing at USD 3453/MT. This encapsulates the intricate interplay of forces steering the APAC Magnesium Alloy Ingot market in the conclusive quarter of 2023.
Europe
In the intricate mosaic of Q4 2023, the Magnesium Alloy Ingot market in Europe revealed a compelling narrative shaped by nuanced dynamics. The absence of reported plant shutdowns underscored the sector's robust operational continuity. Focusing on the Netherlands, a singular force influencing pricing, three pivotal factors emerged, weaving a tapestry of market intricacies. A meticulous examination of trend, seasonality, and correlation patterns elucidated underlying pricing dynamics, surpassing surface-level interpretations. Over the preceding year, Magnesium Alloy Ingot (AZ91D) CFR Rotterdam in the Netherlands displayed a resilient pricing trajectory, reflecting a market characterized by minimal year-on-year oscillations. A subtle percentage adjustment of -2% from the previous quarter mirrored the market's adaptive equilibrium amidst shifting forces. Further exploration brought to light discernible pricing disparities between the initial and latter halves of the quarter. Culminating this journey is the quarter-ending price of Magnesium Alloy Ingot (AZ91D) CFR Rotterdam in the Netherlands, standing at USD 3577/MT. This encapsulates the nuanced interplay of factors shaping the European Magnesium Alloy Ingot market in the conclusive quarter of 2023.