This week, magnesium prices continued a downward adjustment trend. As of Friday, the mainstream transaction prices of 99.9% magnesium ingot in the Fugu region dropped to around 15,800 yuan/mt, down 100 yuan/mt WoW.
This week, magnesium ingot quotations remained under pressure and declined further. Compared to previous weeks, the rate of decline in magnesium prices showed a noticeable increase. According to major production area factories, the current weakening demand for semi coke has led to a downward adjustment in its selling price, with some enterprises experiencing inventory buildup. Coupled with the continued downward adjustment in coal prices, the raw material market provided limited support for magnesium prices, resulting in an accelerated decline. On the demand side, export selling prices remained under pressure, and foreign trade orders were lackluster. In February, the magnesium alloy market performed poorly, reducing the consumption of magnesium ingots and weakening demand-side support.
SMM analysis suggests that with the decline in semi coke prices, the cost-side support for magnesium ingots has weakened. Under the influence of weak demand, magnesium prices are expected to maintain a weak consolidation trend in the short term. SMM will continue to monitor subsequent transaction prices.
