Supply and Demand Stalemate: Magnesium Prices Remained Stable This Week [SMM Analysis]

This week, the mainstream transaction prices of 90 magnesium ingots in major production areas were 15,950-16,000 yuan/mt, basically flat WoW. At the beginning of the week, the negotiation space of magnesium plants narrowed compared to last week, and downstream restocking proceeded in an orderly manner with just-in-time procurement dominating the market. Downstream buyers showed low acceptance of high prices, and the transaction prices of 90 magnesium ingots remained stable without significant fluctuations. Subsequently, some magnesium plants' quotations showed a slight downward trend. Reviewing this week's magnesium market, magnesium prices remained stable, with a clear supply and demand stalemate.
 According to SMM, the ex-factory tax-exclusive prices of 1-3 grade dolomite (Wutai) were 88 yuan/mt, and 2-4 grade dolomite (Wutai) were 128 yuan/mt. Considering that downstream magnesium plants of dolomite have gradually shut down due to rising costs, and the continuous decline in magnesium ingot prices has suppressed raw material dolomite prices, dolomite prices fluctuated downward.
 In the short term, downstream demand provides weak support for magnesium prices. Unless year-end stockpiling and replenishment by overseas customers can proceed on time and in sufficient quantities, the upward momentum for magnesium prices will remain insufficient, and the likelihood of an upward trend is low. SMM will continue to monitor the actual transaction situation in the main production areas of magnesium ingots.