Domestic and foreign trade transactions were sluggish, and magnesium prices dropped back slightly [SMM Spot Magnesium Ingot Report]

SMM reported on July 16 that today's mainstream quotations for magnesium ingots in the Fugu region ranged from 16,150 to 16,250 yuan/mt, a decrease of 50 yuan from the previous working day. The China FOB price ranged from $2,240 to $2,300/mt, a decrease of $10 from the previous working day.

Recently, the trading atmosphere in both domestic and foreign magnesium markets has been sluggish. The volume of foreign trade inquiries has decreased, and buyers have shown a strong wait-and-see sentiment. Additionally, domestic market demand has reverted to a just-in-time procurement model, and producers have struggled to support high prices, leading to downward pressure on prices. In the domestic market, today's mainstream transaction prices for magnesium ingots remained in the range of 16,150 to 16,200 yuan/mt. However, producers showed a strong reluctance to budge on prices, with limited supply of low-priced goods at 16,150 yuan/mt, some of which had questionable quality. Overall trading performance was weak. In the international market, Asian buyers continued to focus on just-in-time procurement, with transaction prices mostly concentrated at the low end of FOB $2,250/mt. Trading volume was limited, and end-users generally adopted a wait-and-see attitude.

Looking ahead, with weak demand and producers' efforts to stabilize prices, it is expected that magnesium prices will continue to be in the doldrums.