Supply-demand pattern unchanged, magnesium prices continue to decline [SMM magnesium ingot spot report]

SMM October 12 news flash:

Today, mainstream quotations for 99.90% magnesium ingot in Fugu stood at 15,300-15,400 yuan/mt, and mainstream quotations for 99.80% magnesium ingot in Fugu stood at 15,300-15,400 yuan/mt. China FOB prices were reported at $2,170-2,270/mt.

The magnesium ingot market remained in the doldrums today. The core logic behind the current weakness is stable supply and high inventory, while demand improvement fell short of expectations, lacking positive support and dragging magnesium ingot prices lower. The simultaneous accumulation of smelter inventory and social inventory during the double holiday period was a key factor behind the continued weakness in magnesium prices after the holiday. The cost side has shown no significant fluctuations recently. Some small and medium-sized magnesium smelters, in order to recover funds, proactively lowered their quotations and sold at low prices, forcing larger smelters to follow suit and cut prices to adapt to market changes. Meanwhile, demand remained sluggish, with limited growth in new orders both in China and outside China. Downstream clients pushed hard for lower prices, forcing traders to push for lower prices from smelters. Combined with insufficient orders, strong bearish sentiment in the market, and existing inventory accumulated earlier, most traders were unwilling to add new stockpiling. As a result, the market is now caught in a vicious cycle: ample supply but weak demand, bearish sentiment suppressing purchase willingness, and sluggish transactions. With no clear positive support in the short term, magnesium ingot prices are expected to remain in the doldrums.