In the first week after the Labour Day holiday, magnesium prices surged due to market disruptions caused by news of dolomite production halts, rising from 16,600 yuan/mt to 17,250 yuan/mt. The weekly average price increased by 850 yuan/mt, representing a 3.9% gain.
According to SMM analysis, the continuous decline in inventory in the main production areas has kept the magnesium ingot market in a state of tight balance in the short term. The low inventory levels continue to provide a floor for magnesium ingot prices, limiting their pullback room. However, some negative factors in the market, such as a decrease in export orders and the impact of earlier low-price orders, have led to a fear of high prices among traders. Additionally, the appreciation of the RMB after the Labour Day holiday has also put pressure on recent foreign trade orders, making it difficult for demand to sustain growth. Under the influence of these factors, the upside room for magnesium ingot prices is constrained, and they are expected to fluctuate rangebound in the short term.
