Magnesium prices remained weak and stable today, with intensified market competition [SMM Spot Magnesium Ingot Report]

SMM reported on July 14 that today, the mainstream quotations for magnesium ingots in the Fugu region remained stable within the range of 16,200-16,300 yuan/mt, a decrease of 50 yuan from the previous working day. The China FOB price stood at 2,250-2,310 US dollars/mt, a decrease of $5 from the previous working day.

Today, the domestic magnesium market was disrupted by unverified news, intensifying the battle between bulls and bears. In the morning, rumors circulated in the market that an environmental protection inspection team had entered Fugu, affecting normal production, which temporarily sparked bullish sentiment. In the afternoon, news emerged that a producer had sold at a low price of 16,150 yuan/mt, intensifying the bearish atmosphere in the market. An SMM survey confirmed that the actual transaction price of magnesium ingots remained stable today, and market trading was sluggish. The current market is characterized by weak supply and demand. With the conclusion of concentrated shipments, downstream traders' purchase willingness has weakened, while producers' inventory levels remain low, lacking support to drive up prices. Magnesium prices are expected to maintain a weak and stable trend overall.

Looking ahead, in the short term, the magnesium market is expected to continue exhibiting weak supply and demand, with prices possibly fluctuating rangebound. There are no obvious signs of recovery in downstream demand, limiting the upside room for magnesium prices. SMM will continue to track the progress of magnesium ingot producers' production resumptions, as well as the order transaction situation of magnesium powder and magnesium alloy plants. If there is no improvement in demand, magnesium prices may continue to face downward pressure.