Bottom out, magnesium prices jumped sharply today

SMM reported on June 11 that domestic magnesium prices bottomed out today. The mainstream quotations for spot 99.90% magnesium ingot in the Shaanxi market were in the range of 16,300-16,400 yuan/mt, up 300 yuan/mt from the morning quotations.

SMM, June 11: Today, domestic magnesium prices bottomed out and rebounded. The mainstream quotations for spot 99.90% magnesium ingot in the Shaanxi market ranged from 16,300 to 16,400 yuan/mt, up 300 yuan/mt from the morning quotations.

Today, the magnesium market showed signs of recovery, with the market quotation for 99.90% magnesium ingot in the Fugu area rebounding to 16,400 yuan/mt. Market confidence has significantly improved compared to the previous period. According to feedback from traders, as magnesium prices bottomed out and rebounded, downstream inquiry activity increased significantly. Some on-the-sidelines end-users gradually entered the market for procurement. Magnesium plants took advantage of the situation to refuse to budge on prices and push them up, driving market prices to rise steadily. However, some purchasing companies remain cautious about the current price rally, believing that the supply surplus pressure brought about by the upcoming production resumptions of magnesium ingot producers has not yet been effectively alleviated, and magnesium prices still face significant operational pressure from fundamental factors.

According to SMM’s latest analysis, the current process of production resumptions among magnesium smelters continues to advance, and the surplus pressure on the supply side remains unresolved. Coupled with the weakening downstream end-use demand being transmitted upstream along the industry chain, the volume of magnesium ingot purchase orders has significantly decreased, resulting in a lack of follow-through growth momentum for this round of magnesium price rebounds. Overall, it is expected that magnesium ingot prices will gradually enter a phase of stable pricing in the short term. SMM will continue to monitor market transaction dynamics and changes in the supply-demand pattern.