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

Published: Jun 27, 2025 18:36

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[SMM Magnesium Ingot Spot Report: SMM reported on June 27 that today's Fugu magnesium ingot offers range from 16,150 to 16,250 yuan/mt, with FOB offers ranging from $2,220 to $2,300/mt. Prices have fluctuated rangebound within the 16,000 to 16,300 yuan/mt range for three consecutive weeks. The current market shows a weak balance between supply and demand: On the supply side, production remains stable, but the expected resumption of production in July may disrupt the current price-holding pattern of producers. On the demand side, domestic trade is stable, while foreign trade orders have stalled temporarily, with traders buying the dip to fulfill existing orders. In the absence of new demand stimuli, it is expected that prices will maintain a fluctuating trend in the short term, and may face downward pressure in July.]

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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