Lackluster Trading Pressures Magnesium Prices [SMM Spot Magnesium Ingot Update]

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At the beginning of the week, trading in the magnesium market was mediocre, with most transactions involving just-in-time procurement at lower prices. The mainstream quotations for 99.9% magnesium ingot were 15,800-15,900 yuan/mt, and magnesium prices remained stable.

According to information from the main production areas, recent lack of demand support has led to a gradual decline in magnesium prices, while suppliers have a strong desire to stabilize prices. A large trader mentioned that at the end of February and early March, it was common for end-users to inquire about prices with pressure, and as demand weakened, competition for orders became increasingly fierce. Some traders competed for orders at extremely low prices, and the sudden rise in magnesium prices resulted in significant losses for traders.

SMM analysis suggests that as supply-side reductions and shutdowns increase, low inventory levels strengthen the willingness of suppliers to maintain stable prices. It is expected that magnesium prices will continue to consolidate slightly on the weak side, and SMM will closely monitor subsequent spot transaction changes.