Manufacturers' reluctance to budge on prices has recovered, with magnesium prices slightly firming up today [SMM Spot Magnesium Ingot Report]

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SMM News on June 18: Today, magnesium producers' reluctance to budge on prices has returned. The mainstream transaction price for magnesium ingots in the Fugu region has been adjusted upward to 16,000 yuan/mt, with lower-priced supplies decreasing compared to the previous day. Magnesium prices have remained stable amidst a stalemate.

According to feedback from a sales executive at a magnesium producer, influenced by the concentrated procurement of foreign trade customers in the early stage, the inventory levels of magnesium producers in the main production areas are all low, and spot magnesium ingots are relatively scarce. Today, the enthusiasm for shipments from various producers is low. Affected by the collective refusal of magnesium producers to budge on prices today, the number of inquiries in the magnesium metal market has slightly declined. Follow-up transactions at the 16,000 yuan/mt price level have been sluggish, with overall trading remaining relatively sluggish. Additionally, magnesium ingots of slightly lower quality in the market have been traded at the 15,800 yuan/mt price level, with a trading volume of around 15 trucks.

SMM analysis suggests that the current magnesium ingot market is facing a multiple market pattern characterized by low inventory, low demand, and low costs. The bearish signals from the production resumptions of multiple magnesium producers have led to a strong bearish sentiment among downstream customers. However, short-term explosive market demand can quickly drive up market prices. Influenced by this, foreign trade traders are "hesitant," and market operations remain cautious. Considering the current market pattern, it is expected that magnesium ingot prices will mainly fluctuate downward in the future.