Magnesium Inventory Down 4.0% WoW, Prices Fall Amid Low Demand and Supply Constraints

[Magnesium Ingot Market Tug-of-War and Stalemate: Cost Support Coexists with Weak Demand] Magnesium prices held steady today. Tightening supply of low-priced goods supported a slight upward shift in the transaction center, and some producers tentatively raised prices. However, downstream buyers and traders mainly adopted a wait-and-see stance, with only sporadic just-in-time procurement. Rising costs and sustained losses strengthened their willingness to hold prices firm. In the short term, magnesium prices lacked upward momentum while the downside was limited, continuing the pattern of moving sideways in a narrow range.

【SMM Magnesium Weekly Review】This week, domestic magnesium ingots trended weaker overall. As of press time, the mainstream quotation in major producing areas stood at 15,800-15,900 yuan/ton, up 100 yuan/ton week-on-week, while the offshore FOB quotation also weakened in tandem. The domestic market as a whole is consolidating at a low level, with smelting costs forming a bottom support that limits significant downside, yet producers' reluctance to sell has eased somewhat, leading to the emergence of low-priced supplies. Downstream players and traders face insufficient orders, with cautious purchasing sentiment, resulting in generally sluggish trading activity. In terms of foreign trade, overseas summer holidays have not yet concluded, leading to sparse inquiries for offshore goods and evident price suppression from overseas buyers. The supply channel of upstream dolomite has shifted, with ample supply, keeping raw material prices stable. Downstream magnesium powder and magnesium alloys moved weaker in tandem with magnesium ingots; magnesium alloys are seeing weak supply and demand both, with processing fees under pressure. In the short term, magnesium ingots lack upward momentum, and the market is expected to maintain a narrow range oscillation pattern.

【SMM Weekly Magnesium Output Briefing】From July 31 to August 6, the weekly output of magnesium from national sample plants stood at 21,940 tons, with the weekly operating rate at 71.98%, down 0.90% month-on-month. According to research, two more primary magnesium smelting enterprises joined the ranks of shutdown for maintenance this week. Coupled with the continuous production cut of enterprises under maintenance in the early stage, the output increment brought by resumption of production failed to offset the reduction caused by maintenance, so the total output of primary magnesium continued to decline slightly this week. Looking forward to next week, with multiple smelting enterprises planning to resume production, the primary magnesium output is expected to pick up slightly.