Magnesium Ingot Inventory Rises 3.57% WoW Amid Cost-Side Support and Phased Stockpiling

Entering September, the magnesium market embarked on a near roller-coaster ride. The first half and second half of the month presented a stark contrast — hot versus cold, optimism versus pessimism — as market sentiment underwent a rapid switch from euphoria to freezing point within just thirty days. At the start of the month, the surging coal prices ignited the market;

[SMM Magnesium Market Analysis: Prices Rose Before Falling Below the Year's Low, the Real Logic Behind Magnesium Plants' "On-and-Off" Operations] The first and second halves of the month presented contrasting patterns, one hot and one cold, one joyful and one sorrowful, with market sentiment rapidly shifting from euphoria to a freezing point in just thirty days. At the start of the month, coal prices shot up, igniting the market, as cost support combined with speculative capital inflows drove magnesium prices sharply higher, briefly suggesting that a new upward cycle had begun. However, the heavy drag from fundamentals soon emerged, and the rally, lacking support from real demand, proved unsustainable. Magnesium prices then drifted lower, ultimately falling below the year's low, with 9990 primary magnesium ingot prices dipping to 156,500 yuan/mt. The monthly trend rose before falling, creating a stark contrast.

[SMM Magnesium Weekly Review: Magnesium Prices Consolidate to Seek Bottom; Producers Sell at Low Prices to Promote Shipments, Downstream Purchases Cautiously on Rigid Demand] This week, the magnesium market maintained a weak supply-demand pattern. Supply side, magnesium ingot smelters showed active willingness to sell, with some offering low-price promotions to ease inventory pressure, though overall sentiment to hold prices firm persisted. Magnesium alloy enterprises faced high inventory levels, with several planning to initiate large-scale production cuts next month. Demand side, foreign trade deliveries largely concluded, while domestic trade maintained only rigid restocking. Downstream acceptance of current prices remained low, with a clear rush to buy amid continuous price rise and hold back amid price downturn mentality. Weakness in end-user automotive demand further dragged down magnesium alloy consumption. Overall, the market showed a strong supply and weak demand pattern, consolidating to seek bottom.