Magnesium Prices Remained Low, The Risk of Overseas Orders Increasing

SHANGHAI, Jun 16 (SMM) - The mainstream transaction price of the magnesium ingot stood at 25,500 yuan/mt. The downstream mainly remained wait-and-see and market transactions may further improve.

The prices of magnesium remained low amid fierce upstream and downstream market deadlock in the past two weeks. The downstream producers demanded lower prices with overall weak transactions while some factories were active in selling goods due to the inventory, and the magnesium prices moved in a downward trend. According to some foreign traders, the overseas downstream enterprises demanded lower prices, and the profits of magnesium ingot foreign trade enterprises shrank. With the sharp fluctuation of magnesium prices, a large enterprise in Turkey has broke their orders, leading to heavy losses to domestic magnesium ingot traders.

 SMM analysis believes that the magnesium prices may still move in a downward trend. The magnesium factories were unwilling to lower the prices as it approached the breakeven point. While the inventory of domestic aluminium billet continued to decrease, the domestic demand is expected to be further increase. It is expected that magnesium prices may remain low. SMM will continue to focus on the destocking of factories.