Magnesium prices continue to consolidate sideways, with the market awaiting the impact of production resumptions in July [SMM Spot Magnesium Ingot Bulletin]

SMM reported on June 27 that today's magnesium ingot quotes in the Fugu region were 16,150-16,250 yuan/mt, unchanged from the previous trading day; the China FOB price was reported at $2,220-2,300/mt.

Currently, the fluctuation of magnesium prices continues to narrow, maintaining sideways movement within the 16,000-16,300 yuan/mt range for three consecutive weeks, with the market showing obvious characteristics of horizontal consolidation. On the supply side, although current production remains stable, new plants are expected to resume production in early July, which is anticipated to impact the existing producer alliance's efforts to refuse to budge on prices. On the demand side, there is a pattern of stable domestic demand and weak overseas demand. The domestic trade market maintains stable circulation, while foreign trade orders have stalled in stages. Traders generally hold bearish expectations and prefer to make periodic bulk purchases at low price points to fulfill the delivery of previous orders. Overall, the market lacks support from new demand and maintains a weak operation trend.

It is expected that magnesium prices will continue to fluctuate rangebound within 100-200 yuan next week. With the release of new production capacity in July, the price center may face downward pressure. SMM will continue to track the production resumption progress of key producers and overseas order situations, promptly releasing the latest market dynamics.