Magnesium Prices Decline During National Day Holiday, Market Sees Weak Buying Interest and Sideways Trend

During the National Day holiday, magnesium ingot prices moved lower overall. On October 2, major primary magnesium smelters in the main production region concluded deals at RMB 15,600/mt. Producers had expected trading volume to expand further at this level, but downstream buying interest was subdued, quickly pushing the market into a short-term bargaining phase. On October 3, the trading focus shifted down to RMB 15,500/mt, with multiple smelters successively following suit. As of today (October 8), mainstream smelter quotes are concentrated around RMB 15,500/mt, with some lower-grade cargoes trading at RMB 15,450/mt, while export FOB prices have likewise fallen to USD 2,200/mt.

Looking ahead, primary magnesium smelters are showing mixed intentions to both ship and support prices, with many hoping to stabilize deals near RMB 15,500/mt. However, downstream end-users have yet to fully digest pre-holiday restocking inventories, and their purchasing appetite remains weak, with procurement focused mainly on necessity-based restocking and bargain buying at lower levels. Market sentiment is largely wait-and-see. According to SMM's communications with industry sources, although a number of traders entered the market during the holiday, their purchasing was relatively rational and they did not stockpile heavily, reflecting a generally bearish outlook for the market going forward. All in all, sharp near-term declines in magnesium prices appear difficult, while significant upside is equally limited, and prices are expected to maintain a bottom-range sideways pattern.