Magnesium Ingot Market Continues to Be in the Doldrums, Tug-of-War Between Sellers and Buyers Intensifies [SMM Magnesium Ingot Spot Cargo Flash Report]

SMM News on June 17: Today, the transaction price of magnesium ingots in the Fugu region stood at 15,950-16,050 yuan/mt. The China FOB price was quoted at US$2,210-2,300/mt.

In the domestic market, ex-factory prices pulled back significantly today to the 16,000 yuan/mt level. Despite producers' intention to maintain price stability, the market failed to sustain the highs of last week due to persistent weakness in both domestic and external demand. Supply side, although producer inventories are at a relatively low level, they remain sufficient, mainly due to active trading during the low-price period early last week. The market is currently in a post-delivery inventory adjustment phase. Considering the approaching traditional summer break in July (though factory maintenance plans may not be entirely concentrated during this period), producers plan to gradually release inventory during trader deliveries in mid-month and month-end. Additionally, several producers in the Fugu region are expected to resume production in early July, with new production volumes potentially exerting fresh pressure on market prices. Demand side, domestic rigid demand remains stable, with buyers inclined to increase purchases when prices are low.

In the international market, the FOB quotation range for magnesium ingots is relatively wide, with mainstream transaction prices maintaining at US$2,210-2,300/mt. European market consumption continues to be sluggish, compounded by the summer break, leading to a significant weakening of purchase willingness. Terminal traders are more focused on price trends and product quality. In the Asian market, Japan, South Korea, and India are the main export destinations, with demand primarily supported by downstream alloy applications. However, traders are more inclined to seek low-priced goods and buy the dip when prices are low. Due to a reduction in total global market orders, competition among Chinese exporters has intensified, resulting in significant fluctuations in quotation ranges. Nevertheless, FOB price trends remain linked to domestic ex-factory prices.

Outlook: Currently, bearish expectations dominate the market, alongside some speculative demand. Prices are expected to stabilize at a weak level. SMM will continue to monitor market dynamics and report on the latest developments in a timely manner.