Magnesium Market Will Remain in the Vicious Cycle of Continuous Price Drop, unless Demand Picks up

Published: Dec 7, 2022 11:35

Source: SMM

Save

SHANGHAI, Dec 7 (SMM) – Entering December, many places in China experienced extreme cold weather.

SHANGHAI, Dec 7 (SMM) – Entering December, many places in China experienced extreme cold weather. On December 1 alone, the market quotation for 90# magnesium ingots in Fugu county, Shaanxi province, dropped by 500 yuan/mt, and some producers cut quotations to as low as 22,500 yuan/mt. Due to downstream wait-and-see sentiment, magnesium price fell further to around 22,000 yuan/mt afterwards. Pessimism dominated the market.

According to SMM statistics, since November 16, the price of magnesium had been falling for 12 consecutive working days, with a drop of 2,000 yuan/mt or nearly 8%. The price drop was mainly due to lower raw material price and sluggish demand. Some magnesium factories are now experiencing losses after continuous price fall.

If magnesium prices still show no signs of bottoming out, downstream buyers will still hold back from buying, which will lead to a vicious cycle of extended downward trend of magnesium prices.

According to customs statistics, China exported 22,966 mt of magnesium ingots in October 2022, a month-on-month increase of 23%, and a year-on-year decrease of 6%. Exports in the first ten months rose 7% year-on-year. The Christmas holiday and Chinese New Year are drawing near, and it remains to be seen whether overseas orders will improve.

Market 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 to learn 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

19 hours ago

A mine in Henan opened bids for a 300 mt tungsten concentrate auction on February 6.

[Tungsten Concentrate Tender Information] SMM February 7: A mine in Henan conducted an online tender on February 6 to sell 300 metric tons of low-grade tungsten concentrate. Lot A had an average WO3 grade of ≥25%, while Lots B and C had an average WO3 grade of ≥22%. The tender results for each lot are as follows: Lot A: 100 metric tons, tender price of 10,155 yuan/mtu. Lot B: 100 metric tons, tender price of 10,160 yuan/mtu. Lot C: 100 metric tons, tender price of 10,155 yuan/mtu.

19 hours ago

Ganzhou Tungsten Association Significantly Raises Tungsten Price Forecast for February 2026

[Ganzhou Tungsten Industry Association's February Tungsten Price Forecast] The Ganzhou Tungsten Industry Association's forecast prices for the tungsten market in February 2026 are as follows: 55% black tungsten concentrate at 670,000 yuan per metric ton unit, up 210,000 yuan per metric ton unit MoM from the January price, an increase of 45.65%; ammonium paratungstate at 970,000 yuan/mt, up 300,000 yuan/mt MoM, an increase of 44.78%; medium-grain tungsten powder at 1,630 yuan/kg, up 480 yuan/kg MoM, an increase of 41.74%.

19 hours ago

Tungsten Market Rallies Strongly, Long-Term Contract Prices Surge & Domestic-Overseas Markets Link Up

Driven by tight spot raw material supply, a sharp hike in corporate long-term contract prices and festive effects, the tungsten market saw price rises on shrinking volumes this week with domestic and overseas markets moving up in tandem; the strong short-term trend is set to continue, and attention should be paid to the resumption of cemented carbide production, scrap tungsten supply and downstream demand release after the Spring Festival.

19 hours ago