SHANGHAI, Jan 28 (SMM) - During the Chinese New Year holiday, the domestic magnesium market was closed while the magnesium factories maintained normal and stable production for the long-term orders in the early stage. Due to the halted logistics services, the overall transactions were muted. Most domestic magnesium factories stopped making quotations during the holidays, and the prices of 90# magnesium ingots offered by some factories stood at 22,000 yuan/mt. Due to the declining pre-holiday inventory and the improving post-holiday demand, the magnesium market is expected to continue to improve after the holiday.
SMM believes that after the Chinese New Year, the domestic magnesium prices will remain firm. On the one hand, the quotations are still firm as the inventory declined before the holiday. On the other hand, the increase in the magnesium prices was limited before the holiday as the downstream enterprises rarely overstocked while the post-holiday demand will be strong. SMM will continue to pay attention to the follow-up spot prices.