SMM Flash, Sep 2:
Today, mainstream quotations for GB 99.90% magnesium ingot in Fugu were 16,050-16,150 yuan/mt, and mainstream quotations for GB 99.80% magnesium ingot in Fugu were 16,050-16,150 yuan/mt. China FOB prices were quoted at $2,280-2,380/mt.
Today, the magnesium ingot market showed a pattern of domestic producers holding prices firm while the foreign trade market was forced to follow higher, with clear tension between cost support and weak demand. Mainstream quotations in the Chinese market were 16,100-16,200 yuan/mt, with mainstream transactions concentrated at 16,100 yuan/mt, as follow-through at higher prices lacked momentum. Supply side, affected by rising costs, producers showed strong willingness to hold prices firm and continued to push quotations higher, but sales at high prices were blocked, with no transactions at some price levels. Demand side, traders sold at lower prices, downstream purchasing attitudes were cautious, wait-and-see sentiment was strong, and resistance to price rises was evident. Foreign trade FOB prices were forced higher along with domestic EXW prices, quoted at $2,280-2,380/mt. This round of FOB price increases did not reflect a real recovery in overseas demand, and high prices lacked support from actual orders. Overseas downstream acceptance of the price increases was limited, order releases were insufficient, and foreign trade transactions showed mediocre performance. Overall, both Chinese and overseas markets lacked strong demand-side drivers, and magnesium prices are likely to move sideways in the short term.
