Supply and Demand Deadlock, Magnesium Prices Consolidate [SMM Spot Magnesium Ingot Flash Report]

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Today, the mainstream quotations for 99.9% magnesium ingot in the main production areas were 16,700-16,800 yuan/mt, up by 100 yuan/mt compared to the previous working day. Inquiries were sluggish, and the supply-demand deadlock intensified.

SMM analysis suggests that due to previous export traders taking orders at low prices, the acceptance of recent magnesium ingot prices has been low. Meanwhile, smelters have shown strong reluctance to sell due to low inventory levels. Under the supply-demand deadlock, magnesium ingot transactions have been sluggish, and the upward momentum of magnesium prices faces strong resistance. Considering the upcoming environmental protection checks in Fugu and the current low inventory levels, the bottom support for magnesium prices remains strong. It is expected that magnesium prices will face difficulty in both rising and falling in the short term.