Change 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 compared to the previous week. The overall market performance this week was stable, with no significant fluctuations. Transactions were mainly concentrated on just-in-time procurement, while downstream buyers showed low acceptance of high prices, leading to a stalemate and bargaining situation between sellers and buyers. Magnesium prices once again entered a state of difficulty in rising or falling.

 According to SMM, the mainstream procurement prices of 75 ferrosilicon by Shaanxi magnesium plants were 6,200-6,300 yuan/mt. The spot market quotations for ferrosilicon remained relatively stable overall, with market sentiment being relatively stable. Recently, ferrosilicon manufacturers faced slight pressure in selling, and spot ferrosilicon prices were under pressure.
Supply and demand side, the current magnesium ingot prices are near the cost line, and magnesium plants showed reduced willingness to sell at lower prices. Most downstream enterprises have basically completed stockpiling. It is expected that subsequent market transactions will mainly rely on just-in-time procurement. Considering the impact of transportation suspension, market activity is expected to continue declining before the Chinese New Year. Coupled with financial constraints faced by magnesium smelting enterprises at year-end, magnesium prices may see slight downward adjustments.