Prices continue to rise, but trading volume shrinks; market shows high-level game [SMM Spot Magnesium Ingot Report]

SMM reported on July 24: Today, the ex-factory quotation for magnesium ingots in the Fugu area is 17,000-17,200 yuan/mt, with an average market price of 17,100 yuan/mt; the FOB quotation is $2,350-2,450/mt.

Currently, magnesium ingot prices continue to rise, with mainstream transaction prices at 17,100 yuan/mt. Since the beginning of this week, driven by favorable macro policies and rising raw material costs, magnesium prices have continued to climb. However, market transactions have significantly contracted today: some traders are taking advantage of the high prices to sell off their previously stockpiled low-priced goods, resulting in spot transactions at 16,800-16,900 yuan/mt, which has somewhat curbed the price increases by magnesium producers. Supply side, magnesium producers' inventories have fallen below 10,000 mt due to previous low-priced sales, but social inventory remains at a relatively high level. Demand side, downstream buyers are generally adopting a wait-and-see attitude, and even some buyers with orders are showing caution, with market demand pulling back as prices rise.

It is expected that the magnesium ingot market will hover at highs in the short term, and SMM will continue to monitor subsequent market changes.