The magnesium ingot market saw active trading, and magnesium prices continued to rise today [SMM Spot Magnesium Ingot Report]

SMM reported on July 8 that today's mainstream quotations for magnesium ingots in the Fugu region were 16,300-16,400 yuan/mt, up 100 yuan from yesterday; the FOB price in China was reported at $2,250-2,330/mt, up $20 from yesterday.

Currently, the magnesium ingot market is showing a strong upward trend, with producers' quotations generally firm. According to SMM analysis, this round of price increases is mainly driven by a rise in trading volume. Survey data shows that today's market trading volume reached 2,000 mt, mainly influenced by the following factors: firstly, as the delivery date for foreign trade traders approaches, there is a concentrated release of replenishment demand; secondly, downstream orders for magnesium powder are good, and purchasing demand is relatively active.

Demand side, although overseas quotations have risen in line with the domestic market, actual transactions remain cautious. It is understood that the current lowest transaction price is maintained at $2,250/mt, with limited trading volume, and there are already signs of a pullback in market inquiries. Current transactions are mainly concentrated on the replenishment needs of traders who have already taken orders. Supply side, the market remains in a tight situation. Merchants' inventories continue to be at a low level and show a further downward trend, with the supply side maintaining a cautious attitude to cope with uncertainties on the demand side.

Looking ahead, if trading volume can maintain the current level, producers' reluctance to budge on prices may continue. However, considering the off-season factor for traditional procurement in July and August, it is difficult for the demand side to see significant improvement, and it is expected that there will be limited space for prices to continue rising sharply.