This week, the mainstream transaction prices of 90 magnesium ingots in major production areas were 15,950-16,000 yuan/mt, basically flat compared to the previous week. The overall market showed no significant fluctuations this week, with transactions still focusing on just-in-time procurement. Downstream buyers had low acceptance of high prices, and sellers and buyers were in a stalemate and bargaining state, causing magnesium prices to once again fall into a phase of difficulty in rising or falling.
According to SMM, the mainstream procurement prices of 75 ferrosilicon by magnesium plants in Shaanxi were 6,200-6,300 yuan/mt. The spot market quotations for ferrosilicon remained stable overall; however, the recent strength in the ferrosilicon futures market has boosted procurement enthusiasm. Meanwhile, ferrosilicon inventory in some regions is declining. Although it is currently the off-season for demand, ferrosilicon prices are expected to remain stable in the short term.
In the short term, downstream demand provides weak support for magnesium prices, and industry participants are operating cautiously, with a relatively strong wait-and-see sentiment in the market. Unless year-end restocking and replenishment by overseas customers can enter the market on time and in sufficient quantities, magnesium prices lack upward momentum. However, as most smelting enterprises are under cost-loss pressure, coupled with Yulin Magnesium's continued acquisition and storage efforts alleviating inventory pressure on magnesium plants, the fluctuation range of magnesium prices is limited, and they are expected to remain stable in the short term.
