China Nonferrous Metals News
The domestic magnesium market has been buckling under sluggish demand and in a glut of magnesium supply during the first week of December. As of 6th December, primary magnesium ingot (99.9%) was being quoted at RMB 13,700-13,800/t (tax inclusive, on cash) in Fugu Shaanxi, with mainstream transaction prices at RMB13,700~13,750/t. In Shanxi, magnesium prices were RMB 14,000/t in Wenxi, down RMB 200/t from last Friday.
Domestic magnesium prices have been in decline since November, falling by RMB 3,800/t from a high point of RMB17,500/t in March 2019 in Fugu Shaanxi, and reaching the lowest level since February 2017. Market commentators are bearish about the market in the short-term with a surplus in supply and continued depressed demand. Furthermore, give increasing liquidity needs at the end of the year, the domestic magnesium market is expected to remain weak and prices are likely to dip further next week.