SHANGHAI, Feb 7 (SMM) -
Domestic magnesium market was operating stably during the Chinese New Year (CNY) holiday, and the magnesium plants maintained normal production, mostly delivering pre-holiday orders. On the downstream side, the logistics services stalled, and the overall market transaction stagnated as well.
It is understood from the sales staff of a large magnesium factory that since the pre-holiday destocking has been completed, the current inventory pressures are minimal. Meanwhile, considering the downstream restocking demand post the holiday, the market is expected to continue to improve.
SMM believes that after the CNY holiday, domestic magnesium prices are expected to rebound.
On the one hand, the pre-holiday magnesium prices fell to a certain extent under the influence of weaker transactions, but the quotations from some major manufacturers were still firm. At the same time, the market now carries strong bullish sentiment.
On the other hand, the current magnesium prices are still at a high level, and the restocking in large amounts will bring heavy financial pressures. Only a small number of companies restocked beyond demand ahead of the holiday. There is still rigid demand in the market post the holiday, and the magnesium prices will rebound to a certain extent under the support of the demand side.