[Demand Market] According to statistics from the CISA, in early October 2023, key steel enterprises produced a total of 20.8304 million tons of crude steel, with a daily output of 2.083 million tons, an increase of 0.81% month on month; In early October, the statistics showed that the inventory of key steel enterprises was 16.3611 million tons, an increase of 1.1142 million tons or 7.31% compared to the previous ten days (i.e. late September); An increase of 557700 tons or 3.53% compared to the same period last month. After the holiday, steel demand contracted, and the market trading atmosphere was average. Steel prices continued to decline slightly. Although there was a slight rebound in the futures market in the middle and later stages of this week, the impact was limited. The profits of steel mills were poor, and there was an increase in maintenance and production reduction; At present, the market sentiment was relatively low, cautious wait-and-see was the main trend,but some people still had expectations for the performance of the "Silver October".

Due to factors such as insufficient demand follow-up and difficulties for downstream users to accept high prices, magnesium prices have fallen under pressure this week. On Friday, the mainstream ex-factory cash quotation including tax of 99.9% magnesium ingots in Fugu area was mostly around 23800-24000 CNY/T. However, some factories have stated that although there were currently not many orders and the market was relatively flat, they were not willing to continue to reduce prices for sales. They believed that the current prices have dropped to a level acceptable to downstream customers and expected transactions to improve. However, considering the certain inventory pressure on the supply side, it was difficult for the magnesium market to experience a significant reversal in the short term. Follow up on demand.