SMM News on June 19: Today, magnesium ingot prices in the Fugu region were quoted at 16,200-16,300 yuan/mt, up 250 yuan from yesterday. The China FOB (Free On Board) price remained unchanged at 2,210-2,300 US dollars/mt.
Today's market transaction price was reported at 16,250 yuan/mt, achieving a single-day increase of 250 yuan. After stabilizing for two days, magnesium prices regained upward momentum this week. Domestic trade saw a surge in just-in-time procurement enthusiasm, and some cautious foreign traders also entered the market, driving up overall trading volumes. Currently, manufacturers in the Fugu region have low inventory levels and hold some pending futures orders for delivery. As news spread about manufacturers resuming production at the end of June and early July, there was strong reluctance to budge on prices from the production side, with the highest quote today reaching 16,300 yuan/mt. However, it is worth noting that today's actual trading volume significantly decreased compared to the previous day. Overseas buyers have resumed a wait-and-see attitude. Although inquiry frequency has increased, actual transactions are still concentrated at the low end of FOB quotes.
From the perspective of the supply-demand pattern, the current situation exhibits "double low" characteristics: both production and inventory on the supply side are declining, while demand remains in the doldrums. In the absence of significant news stimuli, it is unlikely that this round of price increases will be sustainable. SMM will continue to track subsequent price trends.
