In June, magnesium prices have been on a downward trend, with the overall magnesium ingot market prices showing a slow decline. As of June 29, the mainstream transaction prices for 90 magnesium ingots in the main production areas were 17,900 yuan/mt, down 850 yuan/mt from the beginning of June.
At the end of May, the State Council issued a notice on the "2024-2025 Energy Conservation and Carbon Reduction Action Plan." The statement in the document, "Strictly prohibit electricity price concessions for high energy-consuming industries," was bullish for the raw material side of ferrosilicon. The ferrosilicon market saw bullish sentiment, with the most-traded contract hitting the daily limit during trading, closing at 7,824 yuan/mt, an increase of 8.01%. The magnesium ingot market was affected by the energy conservation and carbon reduction policy, with quotes from magnesium ingot producers quickly rising to 18,800-19,000 yuan/mt, supported by the cost side. However, as the impact of the ferrosilicon futures market news gradually faded, capital exited one after another, and the price of raw material ferrosilicon gradually declined. Together with the continued weak demand from the downstream of magnesium ingots, downstream companies adopted a wait-and-see attitude, leading to slow transactions in the magnesium ingot market. Without price support, the magnesium market entered a "downward channel" seeking the bottom.
The demand in the domestic and international magnesium markets remained sluggish. Due to the bullish and bearish factors and the lack of positive news, the magnesium ingot market prices continued to decline under the supply surplus. Until the third week, downstream magnesium ingot producers gradually entered the market for procurement, with active inquiries. Together with the stimulus from news, the magnesium ingot market closed with a "stop-fall and rebound" trend. The mainstream market quotation for magnesium ingots was 18,200-18,300 yuan/mt. In just two or three days thereafter, the magnesium market experienced a reversal, with the transaction price of 90-standard magnesium ingots breaking the 18,000 yuan/mt mark and continuing to drop to 17,850 yuan/mt.
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