Insufficient Demand Follow-Up, Magnesium Prices Jumped Initially and Then Pulled Back Today [SMM Spot Magnesium Ingot Market Update]

SMM September 2 report: Today, Fugu region's magnesium ingot ex-factory offers stood at 16,950-17,050 yuan/mt, averaging 17,000 yuan/mt, flat from the previous trading day. FOB quotes were $2,370/mt.

Fugu producers showed strong reluctance to budge on prices today, with morning offers raised to 17,000-17,200 yuan/mt, temporarily halting the gradual price decline. However, downstream acceptance of high prices remained limited, resulting in mediocre market response. By afternoon, prices dropped back slightly, with mainstream transaction prices settling at 16,900-17,000 yuan/mt. Trading performance was moderate today, with total volume exceeding 1,000 mt. On the export front, downstream buyers generally adopted a wait-and-see attitude toward current quotes, showing low acceptance. Traders maintained cautious quoting, particularly adopting conservative strategies for October and later orders. Current mainstream tax-inclusive quotes hovered around $2,450/mt, with overall export order activity remaining subdued during the day.

Overall, whether magnesium prices can rise on producers' price support still depends on actual demand follow-through. However, with overseas quarterly orders gradually being released, prices may remain under pressure in late September.