Manufacturers show strong reluctance to budge on prices, and the stalemate in the magnesium market continues to spread [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on June 18:

Magnesium Raw Materials

Prices

The ex-factory price (excluding tax) of 1-3 grade dolomite (Wutai) is 78 yuan/mt, and that of 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price of 75 ferrosilicon in Shaanxi ranges from 5,600 to 5,700 yuan/mt.

Supply and Demand

Recently, some dolomite mines in the Wutai area of Shanxi have remained shut down, while ore prices at other dolomite mines in the region have not shown significant fluctuations. Overall, dolomite prices in the Wutai area have maintained a stable trend. Yesterday, the futures market for ferrosilicon rebounded slightly. However, in the spot market for ferrosilicon, expectations of increased supply have led suppliers to have a poor outlook for the future market. Additionally, weak demand from downstream steel mills is expected to result in volatile ferrosilicon prices in the coming period.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingots in the Fugu area ranges from 15,900 to 16,000 yuan/mt, unchanged from the previous working day. The FOB price in China is reported at $2,200-2,280/mt.

Supply and Demand

Yesterday, magnesium prices remained stable. Due to the concentrated procurement by foreign trade customers in the early stage, the inventory levels of magnesium plants in the main production areas are low, and spot magnesium ingots are relatively scarce. Yesterday, the enthusiasm for shipments from various plants was low, and market transactions at the 16,000 yuan/mt level were sluggish, with overall transactions being relatively sluggish. Additionally, magnesium ingots of slightly lower quality in the market were traded at the 15,800 yuan/mt level, with low-priced supplies performing well in transactions.

Magnesium Alloy

Prices

The mainstream tax-inclusive ex-factory price of magnesium alloy in China ranges from 17,500 to 17,600 yuan/mt, and the mainstream FOB price of magnesium alloy in China is $2,450/mt.

Supply and Demand

Affected by the continuous decline in the price of raw material magnesium ingots, customers in the die-casting and 3C sectors, driven by the market sentiment of "rushing to buy amid continuous price rise and holding back amid price downturn," currently have a strong wait-and-see atmosphere, with procurement behaviors mostly based on demand. Overall market transactions have shown mediocre performance. In summary, given that the price of raw material magnesium ingots still has a downward trend in the short term, it is expected that the subsequent price of magnesium alloy will follow the trend of magnesium ingot prices and exhibit a weak performance.

Magnesium Powder

Prices

The mainstream tax-inclusive ex-factory price of 20-80 mesh magnesium powder in China ranges from 17,200 to 17,400 yuan/mt, and the mainstream FOB price of magnesium powder in China is $2,380-2,450/mt.

Supply and Demand

The demand for magnesium powder has increased due to price fluctuations. Currently, prices are at a low level, stimulating procurement enthusiasm among traders and production enthusiasm among manufacturers. Orders from overseas markets have increased as preparations are made for procurement before the summer break.