Magnesium prices accelerated downward today [SMM Magnesium Ingot Spot Report]

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Reported by SMM on June 4: Domestic magnesium prices continued to decline today. In the morning, magnesium producers had a strong reluctance to budge on prices. The mainstream quotations for spot 99.90% magnesium ingot in the Fugu region ranged from 16,500 to 16,600 yuan/mt, but transactions remained sluggish. In the afternoon, magnesium producers adjusted their prices according to the market and sold their products. The mainstream spot transaction prices hovered around 16,400 yuan/mt, a decrease of 100 yuan/mt from yesterday.

Magnesium prices remained in the doldrums today, with an unexpectedly rapid decline. The rapid price drop has led downstream buyers to adopt a wait-and-see attitude. Influenced by the sentiment of "rushing to buy amid continuous price rise and holding back amid price downturn," buyers only made just-in-time procurement. Consequently, market transactions have been sluggish recently. On the magnesium producer side, as magnesium ingot producers in the main production areas have successively announced production resumptions, the overall outlook for magnesium producers on the future market is relatively pessimistic. Therefore, magnesium producers continue to implement a low-inventory sales strategy, and their reluctance to budge on prices has weakened, allowing magnesium prices to decline smoothly. In the foreign trade market, as magnesium prices continue to fall, foreign trade traders have a strong pessimistic sentiment and have successively accepted low-price orders. In the short term, considering that the current short-term futures price has dropped to 16,200 yuan/mt and there are no positive market news to support it in the near future, it is expected that magnesium prices will continue to decline subsequently.