SMM September 9 news flash:
Today, mainstream quotations for national standard 99.90% magnesium ingot in Fugu stood at 15,900-16,000 yuan/mt, and mainstream quotations for national standard 99.80% magnesium ingot in Fugu stood at 15,900-16,000 yuan/mt; China FOB prices were reported at $2,280-2,380/mt.
The magnesium ingot market drifted lower today, as the earlier brief shot-up came to an end and prices pulled back quickly. On the raw material side, coal and ferrosilicon turned downward after their earlier rapid gains, quickly cooling expectations of stronger cost support and further fueling bearish sentiment. On the supply side, this round of price increases did not improve order-taking at magnesium plants. Downstream buyers and traders showed low acceptance of high-priced cargoes. Under inventory and capital pressure, mainstream smelters began to proactively lower quotations and release low-priced spot cargoes, accelerating the decline in magnesium prices and rapidly reversing market sentiment. On the demand side, order volumes were already thin, and combined with wild price swings, downstream clients lacked confidence and generally chose to wait and see, abandoning stockpiling and further suppressing any market recovery. The key focus going forward will be on magnesium producers' pricing strategies and actual selling behavior. The sustainability of producers holding prices firm or cutting prices will dominate the direction of futures. In the short term, the magnesium ingot market is expected to remain weak and under pressure.
