SMM February 9 Magnesium Morning Meeting Minutes:
Magnesium Raw Material
Prices
The ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory price, excluding tax, for 2-4 cm dolomite (Wutai) was 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,850 yuan/mt.
Supply and Demand
Wutai dolomite prices held steady yesterday. Leading dolomite producers in Wutai remained idled, with supply gaps filled by dolomite from other regions. Considering the slight increase in logistics and freight costs ahead of the Chinese New Year, dolomite delivery prices were expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,500 yuan, down 82 yuan, with ferrosilicon futures in the doldrums. In the spot market, ferrosilicon smelters entered a holiday pace, reducing their willingness to sell, while downstream producers concluded their pre-holiday stockpiling, resulting in sparse market transactions. Ferrosilicon prices were expected to hold steady in the short term.
Magnesium Ingot
Today, the mainstream transaction price for magnesium ingots in the Fugu area was 16,350-16,450 yuan/mt, flat from the previous working day; the China FOB price was $2,320-2,380/mt.
Supply and Demand
Domestic magnesium prices held steady yesterday. Approaching the Chinese New Year, primary magnesium smelters showed weak willingness to sell, and market offers were generally stable. Demand side, pre-holiday stockpiling for domestic trade was largely wrapped up, market inquiries were few, spot transactions were sluggish, with most deals being futures orders. For foreign trade, some tenders for orders, mostly for delivery by the end of March, were launched in the first half of the month. Overall, magnesium prices were expected to hold steady around 16,400 yuan/mt before the holiday.
Magnesium Alloy
Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,600-18,800 yuan/mt; the China FOB price for magnesium alloy was $2,600-2,650/mt.
Supply and Demand
Both the benchmark price and the processing fee for the magnesium alloy market held steady yesterday. Supply side, magnesium alloy enterprises had completed raw material stockpiling, with most maintaining normal production. Demand side, downstream die-casting and end-users were on holiday successively, leading to sluggish market transactions. The current market maintained a tight supply-demand balance, and magnesium alloy prices were expected to remain stable in the short term.
Magnesium Powder
Prices
Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,550-17,750 yuan/mt; the China FOB price was $2,480-2,540/mt.
Supply and Demand
The magnesium powder market operated steadily overall yesterday. Supply side, magnesium powder enterprises had largely completed pre-holiday stockpiling of magnesium ingot raw materials, and the production pace gradually slowed down. Demand side, performance tended to be sluggish. In the domestic trade market, procurement was nearly completed, and stockpiling was largely in place. Coupled with a decline in logistics capacity, the overall trading atmosphere cooled. In the foreign trade market, new orders this month were also relatively limited.
