According to China Nonferrous Metals News, last week the magnesium market showed signs of bottoming out and stabilizing, with overall conditions characterized by stability.

As of November 21, the mainstream ex-factory cash quotation (including tax) for 99.9% magnesium ingots in the Fugu region stood at RMB16,000-16,100 per ton, unchanged from the previous Friday's quote. with prices in other regions also holding steady. This marks the eighth consecutive day of stabilization in the magnesium market. During the first three weeks of November, magnesium prices continued to decline from October levels, operating within the annual low range, influenced by significantly increased supply and overall subdued demand.

It is understood that last week, downstream enterprises primarily procured based on immediate needs, resulting in a relatively quiet trading atmosphere. The magnesium market maintained stable operations within the low-price range.

On November 21, this reporter learned from the sales general manager of a magnesium plant in Fugu that the plant's shipments remained acceptable due to the recent stabilization of market prices at low levels. Additionally, it is understood that recent high coal price fluctuations and lackluster sales of coke have placed significant production pressure on factories, leading to operational difficulties.

From a supply-demand perspective, only magnesium alloy demand shows significant growth, while domestic and international demand for other magnesium products remains relatively weak. This market structure of strong supply and weak demand has hindered the magnesium market's recovery. Considering that magnesium prices are already in a low-range and factories face overall operational challenges, supported by cost factors, further downside potential is limited. This week, the magnesium market is expected to remain weak but stable with limited fluctuations, requiring continued monitoring of demand developments.

As an integrated internet platform providing benchmark prices, on December 1st, the benchmark price of magnesium on SunSirs was 16,100.00 RMB/ton, a decrease of 1.38% compared with the beginning of the previous month (16,325.00 RMB/ton).

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