At the beginning of last week, magnesium prices stabilized. The mainstream transaction price of 90 magnesium ingots in the main production areas was 20,300-20,400 yuan/mt. Both supply and demand also remained cautious. The transaction of magnesium ingots was sluggish on last Monday.
As the CNY holiday approaches, magnesium factories relaxed their attitude as downstream demand decreased. The mainstream transaction price of 90 magnesium ingots in the main production areas on Tuesday was 20,200-20,300 yuan/mt, down 100 yuan/mt. As buyers tend to purchase when market prices keep rising, the magnesium ingot trading was still relatively sluggish on last Tuesday.
As the magnesium prices approached the cost line, magnesium factories held their offers firm, and the decline in magnesium ingot prices suspended in mid-week. Some magnesium factories were affected by financial constraints at the end of the year, and occasionally the transaction price was lower than the market price. As of last Friday, the mainstream market transaction price of 90 magnesium ingots in the main production areas was 20,100-20,200 yuan/mt, down 100 yuan/mt.
Affected by low orders, domestic downstream companies have completed stockpiling ahead of schedule. Coupled with sluggish overseas demand, magnesium prices continue to fall. From the perspective of supply and demand, the current price of magnesium ingots is close to the cost line, and the willingness of magnesium plants to continue to offer shipments has weakened; most downstream companies have basically completed their stockings. It is expected that subsequent transactions in the magnesium market will be dominated by rigid demand purchases, and taking into account logistic suspension, the market activity will continue to weaken before the CNY holiday. Therefore, magnesium prices are expected to remain stable.
