During the first week of December, the magnesium market maintained a steady yet narrow adjustment trend. This was driven by persistent lackluster demand, retreating coal prices, and the absence of significant positive catalysts. Some factories offered modest price concessions to facilitate cash flow, while others, supported by cost levels, showed limited willingness to discount.

As of December 5, the mainstream ex-factory cash quotation (tax-inclusive) for 99.9% magnesium ingots in the Fugu region stood at CNY 15,900–16,000/ton. The lowest transaction price retreated to CNY 15,800/ton, down CNY 100–200/ton from the previous Friday. Other regions followed suit with corresponding adjustments. Since November, the magnesium market has remained under pressure at low levels due to oversupply.

Last week, overall market transactions were relatively sluggish. Amid stable-to-weak market conditions, downstream buyers maintained caution, primarily replenishing small quantities as needed.

On December 5, market sources indicated that last week's magnesium market remained stable with a slight downward trend. Some factories sold at prevailing market prices to recover funds, while those with lower inventory and capital pressures showed limited willingness to sell below ¥16,000/ton, adopting a cautious stance toward short-term market direction.

From a supply-demand perspective, demand has yet to show significant improvement. With ample supply and weak demand, the magnesium market is expected to remain under pressure in the near term. However, considering that prices have fallen to annual lows, coupled with overall operational pressures on factories, cost support, and underlying demand, further downside for magnesium prices appears limited. This week, the magnesium market is expected to maintain a weak and stable consolidation pattern, with continued monitoring of demand follow-through required.

As an integrated internet platform providing benchmark prices, on December 12, the benchmark price of magnesium on SunSirs was 15,550.00 RMB/ton, a decrease of 3.42% compared with the beginning of the month (16,100.00 RMB /ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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