Magnesium prices rebounded mildly this week. Affected by stockpiling ahead of the Labour Day holiday, the trading volume of magnesium ingots in major producing areas was excellent. Earlier, the daily average trading volume of magnesium ingots remained at around 1,500 mt. The inventory pressure of magnesium ingot smelters was effectively relieved. Some magnesium ingot smelters sold magnesium ingot futures for the Labour Day holiday. Supported by low inventory, magnesium ingot prices rebounded mildly one day after the holiday. As of the time of writing, the market transaction price of 99.90% magnesium ingot in major producing areas was 15,600 yuan/mt, up 200 yuan/mt from the beginning of the week.
SMM analysis suggests that, based on current market performance, as inventory in major producing areas continues to destock, bearish sentiment in the magnesium market has been repaired. However, considering the general acceptance of high prices by downstream consumers, there is limited upward momentum in the future. It is expected that magnesium prices will fluctuate rangebound. SMM will continue to monitor subsequent changes in spot cargo trading volumes.
