Magnesium Ingot Market Edges Lower in the Doldrums, Domestic and Overseas Demand Stay Weak in Tandem [SMM Magnesium Ingot Spot Report]

SMM August 5 Bulletin:

Today, mainstream quotations for national standard 99.9% magnesium ingot in Fugu area were 15,850-15,950 yuan/mt, and mainstream quotations for national standard 99.8% magnesium ingot in Fugu area were 15,800-15,900 yuan/mt; China's FOB price was reported at $2,240-2,340/mt.

Today, the magnesium ingot market continued to consolidate on a subdued note, with the price center dipping slightly but bottom support remaining. Mainstream spot quotations in main production areas were 15,850-15,900 yuan/mt. In early trading, some large producers concentrated their selling at 15,850 yuan/mt, but market purchases were limited, and trading sentiment was subdued. Supply at 15,800 yuan/mt remained tight, mainly magnesium powder cargo, making it difficult to reflect mainstream actual transactions. Although upstream producers' quotations appeared firm, room for price negotiation in actual deals had quietly opened, while downstream and traders continued to wait and see due to weak end-user orders, with only sporadic rigid demand transactions and low restocking willingness. In the foreign trade sector, FOB prices operated at $2,240-2,340/mt. Overseas clients pushed strongly for lower prices, compounded by a demand vacuum due to the summer break, making it hard to stimulate purchasing enthusiasm in the overseas market. Overall, the slow release of domestic demand and subdued overseas demand formed a dual pressure. The market lacked a new order driver, while tight supply of low-priced cargo limited the downside. In the short term, magnesium prices are likely to consolidate in a narrow range on a subdued note.