Magnesium Ingot Price Concessions Drive Destocking and Deal Recovery, Weak Domestic & Overseas Demand Weighs on Market [SMM Magnesium Ingot Spot Flash]

SMM Flash, July 13:

Today, mainstream quotations for 99.90% magnesium ingot (national standard) in Fugu area were 15,800-15,900 yuan/mt, and those for 99.80% magnesium ingot (national standard) were 15,750-15,850 yuan/mt. China FOB prices were $2,240-2,350/mt.

Today, magnesium ingot futures trended lower in a narrow range, with clear divergence between supply and demand sides. On the supply side, producers' inventories remained high. Some top-tier players proactively lowered their selling offers to relieve inventory pressure and cope with low-price competition in the industry. The mainstream transaction center currently stood at 15,700-15,800 yuan/mt, with actual deals concluded at both higher and lower prices. Spot transactions showed a recovery. On the demand side, consumption both in and outside China remained sluggish. Downstream end-users only purchased raw materials for rigid demand, with little willingness to restock in large volumes. The market was gripped by a strong wait-and-see sentiment, and export offers were under pressure and weak. In summary, producers' price concessions drove a modest recovery in spot transactions at this stage, but the demand side lacked strong support. In the short term, magnesium ingot prices are likely to continue consolidating in a narrow range on a subdued note.