Magnesium Prices Fluctuate Downward Amid Tariff Policies and Weak Demand

On April 8, the mainstream quotations for 99.9% magnesium ingot in the main production areas ranged from 16,500 to 16,700 yuan/mt. Traders sold goods at low prices, with only a few transactions concluded at 16,300 yuan/mt.

On April 2, US time, Trump announced "reciprocal tariffs" and "comprehensive tariffs," with the US imposing tariffs ranging from 10% to 49% on various countries. Macro-wise, the US tariffs exceeded market expectations, and the substantial tariffs are bound to impact end-use demand.

From the perspective of magnesium fundamentals, magnesium prices fluctuated at highs before the holiday, with downstream enterprises showing low acceptance of high prices. Overseas customers exhibited strong wait-and-see sentiment, and only a few domestic downstream enterprises maintained minimal restocking for essential needs, leaving magnesium prices lacking demand support. Additionally, affected by tariff policies, tariffs in Southeast Asian countries increased, raising the re-export costs of magnesium ingots, which to some extent affected magnesium ingot exports. In the short term, magnesium prices are expected to fluctuate downward.