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

[Magnesium Ingot Market Continues Strong Supply and Weak Demand, Chinese and Overseas Markets Both Weaken] The magnesium ingot market is in the doldrums, with offers at 15,750-15,850 yuan/mt and FOB $2,240-2,340/mt. Supply is ample but destocking is slow, downsteam buyers push for lower prices and wait, month-end restocking has not appeared, export orders face severe price cuts, and traders' profits are squeezed. Under the pattern of strong supply and weak demand, the market will continue to consolidate on a weak note in the short term.

[Cost support keeps magnesium ingot trading stagnant] Magnesium ingot prices in China are stable, with producers holding prices firm but facing supply pressure and high inventory. Domestic downstream rigid demand adopts a wait-and-see approach, while foreign trade exports are weak. Costs form a bottom-line support. Under the tug-of-war between supply and demand, the short-term market may maintain a weak and narrow sideways movement.

[Magnesium Market Quotations Diverged, Trading Weak, Prices Expected to Remain Under Pressure] Today, the main production areas for 99.90% magnesium ingot quoted at 15,800-15,900 yuan/mt, basically flat from earlier quotes.