Granular Magnesium Chloride

I. Market Dynamics Intelligence
1. Price Trends
- The market price of granular magnesium chloride has recently shown a slight upward fluctuation. In major domestic markets, price increases in some regions have ranged from 50 to 100 RMB/ton over the past week.
- Price differences among different specifications are evident. Industrial-grade granular magnesium chloride has seen relatively significant price increases, while food-grade product prices have remained relatively stable, though they have also experienced a slight upward trend influenced by the overall market sentiment.
2. Supply Conditions
- The operating rate of major domestic manufacturers remains largely stable, with most companies maintaining their normal production pace. However, in some regions, individual small-scale enterprises have experienced temporary production halts or output restrictions due to environmental inspections, which has had a certain impact on local market supply.
- On the import front, recent arrivals of imported granular magnesium chloride have decreased. This is mainly due to tight supply from some international suppliers and rising transportation costs, leading to a decline in import volumes.
3. Demand Conditions
- Downstream industry demand is showing a slow growth trend. In the chemical sector, granular magnesium chloride serves as a key raw material for producing various chemical products. As the chemical industry gradually recovers, demand for magnesium chloride has increased.
- In the building materials industry, magnesium chloride is used in the production of fireproof boards and lightweight partition boards. Although the real estate market has not shown significant recovery, the commencement of some infrastructure projects has boosted demand for magnesium chloride in the building materials sector.
- Demand in the food industry remains stable, primarily for use as a coagulant in tofu production, with minimal fluctuations.
4. Inventory Levels
- Producer inventories are generally at moderate levels, with some companies seeing a decrease in inventory due to recent order increases. Trader inventories are relatively low. Due to positive expectations for future prices, traders' willingness to restock has improved, but restocking volumes remain limited due to supply-side constraints.

II. Analysis and Judgment
1. Causes of Price Fluctuations
- On the supply side, localized supply reductions caused by environmental inspections and the decrease in import volumes have made the overall market supply relatively tight, providing support for prices.
- On the demand side, increased demand from the chemical and building materials industries has driven market demand for granular magnesium chloride, further pushing prices up.
- On the cost side, rising raw material prices and increased transportation costs have also contributed to the upward trend in magnesium chloride prices.
2. Market Supply-Demand Relationship
- The current market supply-demand relationship is in a state of tight balance. Supply growth is constrained by environmental regulations and import factors, while demand is showing a slow growth trend as downstream industries recover. This supply-demand pattern is expected to persist in the short term, exerting upward pressure on prices.

III. Forecasts
1. Short-term Forecast (1-2 weeks)
- Prices: Granular magnesium chloride prices are expected to continue a slight upward trend, with increases likely ranging from 50 to 150 RMB/ton. This is mainly because the supply tightness is unlikely to ease in the short term, while demand is expected to remain stable and growing.
- Supply: After environmental inspections conclude, some halted or restricted enterprises may gradually resume production. However, import volumes are unlikely to increase significantly in the short term, so overall market supply will remain tight.
- Demand: Demand from the chemical and building materials industries will continue to support the market, while food industry demand will remain stable.
2. Medium-term Forecast (1-3 months)
- Prices: If supply conditions do not improve significantly, prices are expected to continue rising, but the rate of increase may gradually slow. As prices rise, downstream enterprises may adjust their procurement strategies to some extent, which could suppress further price increases.
- Supply: As environmental inspections conclude and enterprises adjust production, domestic supply may increase. Meanwhile, importers may increase import volumes based on market conditions, and the supply tightness is expected to ease gradually.
- Demand: Demand growth in the chemical and building materials industries may fluctuate due to macroeconomic and seasonal factors, but overall demand is expected to maintain a growth trend.