SMM reported on July 1 that today's magnesium ingot quotes in the Fugu area ranged from 16,150 to 16,250 yuan/mt, remaining unchanged from the previous working day. The China FOB price was quoted at $2,220 to $2,300/mt.
Currently, the market exhibits characteristics of a weak balance between supply and demand. In terms of supply, mainstream factories maintain a normal production pace, and plans for new capacity additions have not yet been implemented, resulting in relatively stable market supply. On the demand side, the domestic market maintains basic rigid demand, while foreign traders primarily execute previously placed low-price orders, choosing to replenish stock in batches during periods of price corrections. It is worth noting that the European market has entered the traditional summer break period, coupled with downward pressure on the local economy, causing buyers to generally postpone new procurement plans, leading to continued sluggish overseas demand. Feedback from market participants indicates that most factories are still attempting to maintain current price levels, but inventory pressure is gradually accumulating. Some traders have stated that the current price is approaching a critical point, and if demand fails to recover in a timely manner, it is not excluded that factories may take the initiative to adjust prices.
Outlook: Considering the strong psychological support level at 16,000 yuan/mt, it is expected that prices may fluctuate rangebound in the short term, with limited downside room. SMM will continue to track and report on the latest market developments.
