Cost floor support, magnesium ingot transactions remain in stalemate [SMM Magnesium Ingot Spot Flash Report]

SMM August 25 News Flash:

Today, in the Fugu area, mainstream quotations for national standard 99.9% magnesium ingot were 15,800-15,900 yuan/mt, and for national standard 99.8% magnesium ingot were 15,800-15,900 yuan/mt; China FOB quotations were 2,250-2,350 $/mt.

Today, China's magnesium ingot quotations held steady overall, with mainstream quotations at 15,800-15,850 yuan/mt. Actual transactions mostly settled around 15,800 yuan/mt, with the market seeing mainly small-lot deals and overall trading activity was light. Upstream producers adopted a rational approach to shipments, showing strong willingness to hold prices firm, and were not keen to sell at low prices proactively; no obvious low-priced supply emerged in the market. However, the overall pressure on the supply side remained unchanged, with inventory levels in the industry relatively high. Downstream buyers only made just-in-time procurement, with limited enthusiasm for purchases and maintained a wait-and-see stance. For foreign trade, FOB mainstream quotations were 2,250-2,350 $/mt, and exports were also sluggish. Orders from the Middle East and Saudi Arabia that had been placed earlier did not help the market recover, while Europe only had a small amount of low-priced transactions for essential needs. Large overseas orders were hard to find, but low-ball inquiries kept increasing. At present, supply and demand in the market were mismatched. Rising raw material costs provided some floor support, but end-use demand was insufficient, making it difficult to pass on costs downstream, leading to a stalemate between sellers and buyers. In summary, in the short term, Chinese and overseas magnesium ingot markets were likely to consolidate narrowly with a weak tendency.