Magnesium Market Remains Weak

SHANGHAI, Nov 23 (SMM) - Today, the mainstream ex-factory prices of magnesium ingots (Mg 99.90%) in Fugu area were around 23,200-23,300 yuan/mt, which is 100 yuan/mt lower than yesterday.

Amid the middle of the week, the prices of magnesium continued to decline. Affected by the sufficient supply and the low raw material prices, the prices of magnesium weakened. It is understood from some traders that as the prices of magnesium fell close to the cost line, the downstream enterprises gradually purchased as needed, and the market trading atmosphere picked up. However, under the supply surplus, the downstream enterprises were willing to purchase high-prices goods. As such, the prices of magnesium weakened under the pressure. As for the follow-up period, according to the current domestic market feedback, under the pressure of high inventory, the market players still hold a bearish outlook towards the magnesium prices. For fear of the further price decline, some traders are unwilling to stockpile, hence the short-term magnesium prices may remain weak. SMM will continue to pay attention to the overseas orders and changes in raw material prices.