Magnesium Prices Bottomed Out This Week

Published: Apr 22, 2022 15:29 (GMT+8)

Save

Magnesium prices bottomed out this week. Magnesium plants were increasingly inclined to hold the prices firm after magnesium prices dropped for several days. Some downstream players that stood wait-and-see earlier began to purchase on rigid demand, supporting magnesium prices. As of Friday April 22, #90 magnesium ingot were traded at around 75,000 yuan/mt in Fugu city.

SHANGHAI, Apr 22 (SMM) - Magnesium prices bottomed out this week. Magnesium plants were increasingly inclined to hold the prices firm after magnesium prices dropped for several days. Some downstream players that stood wait-and-see earlier began to purchase on rigid demand, supporting magnesium prices. As of Friday April 22, #90 magnesium ingot were traded at around 75,000 yuan/mt in Fugu city.

According to some magnesium plants in main producing areas, the current prices were in chaos. The manufacturers generally held firm to the prices, and low-priced goods could hardly be found. Some others, however, suspended making shipments for the moment and observed how the trading market progressed.

In the downstream, with the magnesium prices rebounding, some of the downstream enterprises started to make purchases, but there were also some remained wait-and-see because of the rapid rise in prices. Market players were quite different on future directions concerning magnesium prices.

To sum up, magnesium prices were significantly underpinned by rigid demand after the prices bottomed out this week. The downstream demand is expected to be further exploited in light of market confidence from rebounding magnesium prices and upcoming Labour Day holiday, according to SMM. Hence magnesium prices are likely to remain firm in the short term.

Market

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Sep 30, 2026 18:41 (GMT+8)

September's Magnesium Market: From Surge to Slump, Producers Navigate Cost and Demand Challenges [SMM Analysis]

Entering September, the magnesium market embarked on a near roller-coaster ride. The first half and second half of the month presented a stark contrast — hot versus cold, optimism versus pessimism — as market sentiment underwent a rapid switch from euphoria to freezing point within just thirty days. At the start of the month, the surging coal prices ignited the market;

Sep 30, 2026 18:41 (GMT+8)

Sep 30, 2026 17:28 (GMT+8)

First Rise Then Fall, Breaking Below the Year's Low: The Real Logic Behind Magnesium Plants' "Stop-Start" Operations [SMM Analysis]

[SMM Magnesium Market Analysis: Prices Rose Before Falling Below the Year's Low, the Real Logic Behind Magnesium Plants' "On-and-Off" Operations] The first and second halves of the month presented contrasting patterns, one hot and one cold, one joyful and one sorrowful, with market sentiment rapidly shifting from euphoria to a freezing point in just thirty days. At the start of the month, coal prices shot up, igniting the market, as cost support combined with speculative capital inflows drove magnesium prices sharply higher, briefly suggesting that a new upward cycle had begun. However, the heavy drag from fundamentals soon emerged, and the rally, lacking support from real demand, proved unsustainable. Magnesium prices then drifted lower, ultimately falling below the year's low, with 9990 primary magnesium ingot prices dipping to 156,500 yuan/mt. The monthly trend rose before falling, creating a stark contrast.

Sep 30, 2026 17:28 (GMT+8)

Sep 30, 2026 15:56 (GMT+8)

Magnesium Prices Consolidate Near Bottom: Producers Sell at Low Prices to Promote Shipments, Downstream Purchases Cautiously on Rigid Demand [SMM Magnesium Weekly Review]

[SMM Magnesium Weekly Review: Magnesium Prices Consolidate to Seek Bottom; Producers Sell at Low Prices to Promote Shipments, Downstream Purchases Cautiously on Rigid Demand] This week, the magnesium market maintained a weak supply-demand pattern. Supply side, magnesium ingot smelters showed active willingness to sell, with some offering low-price promotions to ease inventory pressure, though overall sentiment to hold prices firm persisted. Magnesium alloy enterprises faced high inventory levels, with several planning to initiate large-scale production cuts next month. Demand side, foreign trade deliveries largely concluded, while domestic trade maintained only rigid restocking. Downstream acceptance of current prices remained low, with a clear rush to buy amid continuous price rise and hold back amid price downturn mentality. Weakness in end-user automotive demand further dragged down magnesium alloy consumption. Overall, the market showed a strong supply and weak demand pattern, consolidating to seek bottom.

Sep 30, 2026 15:56 (GMT+8)