Magnesium Market Continues to Break Below the Year's Low, Pressure Persists with Further Downside Possible [SMM Magnesium Ingot Spot Report]

SMM October 13 news flash:

Today, mainstream quotations for national standard 99.90% magnesium ingot in the Fugu area were 15,250-15,350 yuan/mt, and mainstream quotations for national standard 99.80% magnesium ingot in the Fugu area were 15,200-15,300 yuan/mt; China FOB prices were quoted at $2,160-2,260/mt.

The weak pattern of the magnesium ingot market continued today. After the holiday, magnesium prices kept falling. In addition to high inventory and weak demand, low-priced supply continuously disturbing the market was also an important factor. On the supply side, smelters were divided: large smelters chose to hold prices firm, but transactions for high-priced goods were sluggish. Some small smelters proactively sold at low prices to recover funds and maintain operations. Although the total volume of low-priced supply was not large, news of low-priced transactions continued to spread, further suppressing the already sluggish market and forcing large smelters to follow the decline later. Against this backdrop, traders and downstream end-users remained cautious, making only small just-in-time procurement with low willingness to stockpile. In the absence of clear positive factors, the magnesium market may remain weak in the short term, and a rebound still depends on the release of subsequent demand growth.