Insufficient follow-up on transactions; magnesium prices accelerated their decline today [SMM Spot Magnesium Ingot Report]

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SMM, June 16: Affected by insufficient market transaction follow-ups, magnesium plants in the Fugu region slightly lowered their quotes today. The mainstream transaction prices in the market ranged from 16,000 to 16,100 yuan/mt, with some traders choosing to sell at lower prices, leading to a wait-and-see atmosphere in the magnesium market.

According to feedback from magnesium plants in the main producing regions, due to a significant decline in inquiries for magnesium metal, factories struggled to follow up on high-price transactions, and prices showed signs of loosening. Occasionally, low-priced supplies at 15,900 yuan/mt appeared in the market, and the willingness to sell on the supply side continued to increase. Some traders pointed out that the emergence of low-priced supplies further reinforced the market sentiment of "rush to buy amid continuous price rise and hold back amid price downturn," slowing down the pace of downstream purchases and heating up the wait-and-see sentiment in the market again. Due to the centralized procurement just last week, the current demand for restocking among downstream enterprises is weak. Coupled with the expectation of a supply surplus triggered by the resumption of production at magnesium plants, the market is becoming more cautious in judging the downside room for magnesium prices. Overall, it is expected that magnesium prices will maintain a weak consolidation trend this week. SMM will continue to track changes in spot market transactions and provide timely feedback on the latest market dynamics.