Magnesium ingot prices soared in a single day, driven by raw material costs, causing market fluctuations [SMM Spot Magnesium Ingot Report]

SMM reported on July 22 that the magnesium ingot market in Fugu region experienced significant fluctuations today. In the morning, the mainstream quotations were 16,500-16,600 yuan/mt, with actual transactions at 16,500 yuan/mt. In the afternoon, quotations continued to rise to 16,700-16,800 yuan/mt, and transaction prices followed suit, reaching 16,700 yuan/mt.

The direct cause of this price anomaly was the surge in raw material prices driven by "anti-rat race" sentiment. On July 22, the futures market showed that the ferrosilicon 2509 contract rose by 3.74% to 5,874 yuan/mt. Coking coal and coke futures also rose synchronously, with the most-traded coking coal contract hitting the daily limit, and the coal ETF (515220) rising by 8%. Against the backdrop of rising raw material costs, coupled with low producer inventories and tight spot supply, magnesium ingot prices rose rapidly. Demand side, this week coincided with the delivery period for domestic and foreign trade, and some traders entered the market for procurement due to order fulfillment needs, leading to an increase in market inquiries and further supporting price increases.

In overseas markets, the latest customs data showed that cumulative magnesium ingot exports in H1 decreased by 10.64% YoY, falling below market expectations. Despite the price increase, downstream demand remained weak, and the market maintained a weak balance. Currently, overseas buyers are mostly adopting a wait-and-see attitude, coupled with adjustments in export policies, leading to uncertainties in the export situation in H2.

It is expected that prices may maintain an upward trend in the short term, and SMM will continue to monitor market changes.