Magnesium Prices Continue to Decline Today amid Sluggish Transactions [SMM Magnesium Ingot Spot Report]

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SMM, May 28: Domestic magnesium prices continued to decline today. The mainstream quotations for spot 99.90% magnesium ingot in the Fugu region ranged from 16,900 to 17,000 yuan/mt, with spot transaction prices hovering around 16,900 yuan/mt, basically flat compared to yesterday.

Transactions remained sluggish today. According to a salesperson from a factory, there is currently a strong wait-and-see sentiment among downstream buyers, with overall weak demand. The downstream psychological price level is around 16,800 yuan/mt. Due to the sustained low operating rate of magnesium plants, the inventory pressure on magnesium plants has been relatively small recently. Meanwhile, the overall weak demand from downstream buyers has not improved further, resulting in a tug-of-war between "small inventory pressure" and "weak downstream demand" in the market. If the demand side continues to remain sluggish, with the increase in inventory pressure, it is expected that magnesium prices may enter a period of weakness before the Dragon Boat Festival.