Supply and demand deadlock intensifies, magnesium prices remain stable today [SMM Spot Magnesium Ingot Report]

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SMM, June 24: Today, magnesium producers showed a strong reluctance to budge on prices. The mainstream quotations for magnesium ingots in the Fugu region were 16,000-16,100 yuan/mt, with a decrease in low-priced supplies compared to the previous day. Downstream purchase willingness was low, and magnesium prices remained stable amidst a stalemate.

According to a sales executive from a magnesium producer, the magnesium market has recently shown a weakening trend in both supply and demand. Earlier, foreign trade customers flooded the market with large purchases, leading to a continuous decline in magnesium producers' inventories in the main production areas and a tightening supply of magnesium ingot spot cargo. As a result, magnesium producers' enthusiasm for shipping goods has significantly decreased recently, and they generally choose to hold back their supplies.​Affected by the collective refusal of magnesium producers to budge on prices, the number of market inquiries has slightly declined. Purchasers are adopting a wait-and-see attitude towards current prices, and market transaction follow-through is severely insufficient. Buyers and sellers are struggling to reach a consensus on transactions, resulting in sluggish overall trading activity. Considering the approaching month-end and the increased capital needs of producers, the current supply-demand stalemate can only be sustained in the short term. Magnesium prices may loosen subsequently.