Magnesium smelters' willingness to hold prices firm rebounds, early signs of a rebound emerge in the magnesium market [SMM magnesium ingot spot report]

SMM October 21 news:

Today, mainstream quotations for GB-standard 99.90% magnesium ingot in Fugu were 15,100-15,200 yuan/mt, and mainstream quotations for GB-standard 99.80% magnesium ingot in Fugu were 15,100-15,200 yuan/mt; China FOB prices were $2,150-2,250/mt.

Tonight, ex-works prices for magnesium ingot were raised from earlier levels, with mainstream quotations in China now at 15,100-15,200 yuan/mt, up 50 yuan/mt from this morning. Smelters' willingness to hold prices firm rebounded. Supply side, earlier low-priced cargoes continued to disrupt the market, forcing major smelters to follow the decline, but the weaker prices did not spur effective incremental purchases, instead further intensifying bearish sentiment. Demand side, the persistently weak market suppressed downstream purchase willingness, and combined with exchange rate fluctuations, traders showed insufficient enthusiasm for taking orders and stockpiling, leaving the market in a wait-and-see mood. Tonight's price hike was partly a correction of the previous prolonged downturn and also a self-rescue move by many loss-making smelters. Meanwhile, increased inquiries and tenders for large orders from overseas downstream end-users provided support for the market to bottom out. Early signs of a rebound have emerged, but further upside still needs to be confirmed.