Insufficient follow-up on transactions. Magnesium prices were in the doldrums today [SMM Spot Magnesium Ingot Flash Report]

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SMM reported on May 19 that domestic magnesium prices continued to decline today. The mainstream transaction prices for 99.90% magnesium ingot in the Fugu region were around 17,200-17,400 yuan/mt, down 50 yuan/mt from yesterday.

Currently, the magnesium market is showing a trend of falling back from highs. Downstream enterprises are adopting a wait-and-see attitude towards procurement, and market trading activity has significantly decreased. According to feedback from magnesium plants in the main producing areas, downstream enterprises have generally returned to a wait-and-see stance. Magnesium plant quotes closely follow market changes, with frequent cases of low-price transactions emerging, which in turn drive the overall magnesium prices to continue to decline.

Looking ahead, magnesium prices are expected to enter a rangebound fluctuation zone. On the support side, smelter inventory is at a low level, coupled with strong willingness among enterprises to refuse to budge on prices, forming a certain level of price support and effectively limiting the downside room for magnesium prices. However, the restraining factors are equally apparent. Due to limited market demand for high-priced magnesium supplies, downstream enterprises lack enthusiasm for procurement, severely constraining the upward momentum of magnesium prices.