Lack of confidence, magnesium prices continued to decline today [SMM Magnesium Ingot Spot Report]

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SMM, June 5: Today, domestic magnesium prices continued to decline. The mainstream quotations for spot 99.90% magnesium ingot in the Shaanxi market ranged from 16,200 to 16,300 yuan/mt, with mainstream spot transaction prices hovering around 16,200 to 16,300 yuan/mt, a decrease of 100 yuan/mt from yesterday's transaction prices.

Today, magnesium prices remained in the doldrums. Coupled with the continuous decline in magnesium prices in the early stage, downstream players generally adopted a wait-and-see attitude, and the market lacked overall confidence in magnesium prices, leading to a downward pressure on market quotations. According to factories, the continuous downward adjustment of magnesium prices is due to, on the one hand, the recent increase in news about magnesium plants resuming production, which has increased the destocking pressure on the supply side and weakened the factories' bargaining power. On the other hand, the recent weakness in ferrosilicon and coal prices has reduced the cost support for magnesium ingots. Given the weak demand, it is normal for prices to adjust downward under pressure. Regarding the future trend of magnesium prices, due to the lack of supportive positive factors, the current market sentiment is predominantly pessimistic. This week, magnesium prices are likely to continue their downward adjustment trend. SMM will continue to monitor changes in the prices of raw materials for magnesium ingots.