Magnesium Ingot Prices are Stable Early this Week with the Improvement of Downstream Demand

SHANGHAI, Dec 26 (SMM) - On December 26, the mainstream traded prices of magnesium ingots (Mg 99.90%) in Fugu were 21,600 yuan/mt, flat from last Friday.   

Near the end of the year, downstream companies are more willing to restock raw materials, pushing up magnesium ingot prices to a certain extent. Therefore, magnesium ingot prices have been stable in recent days. According to traders, inquiries from overseas companies were slack owing to the Christmas holidays in foreign countries. And the market mainly witnessed downstream purchases on rigid demand. Buyers and sellers were cautious this week as magnesium ingot prices did not grow further last week. Downstream and upstream companies wrestled over the prices. SMM believes that the magnesium ingot prices will still bear pressure from the high inventory.

SMM analysis: Prices of magnesium ingots were lower than expected in the peak season of November and December. The shrinking downstream demand aroused a strong bearish sentiment in the market. At the same time, the spread of COVID-19 outbreaks reduced the operating rates of downstream producers and hit domestic transactions. SMM will pay close attention to the follow-up market trading.