Reluctance to budge on prices intensifies, magnesium prices stabilize at highs [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on June 23:

Magnesium Raw Materials

Prices

The ex-factory price (tax not included) for 1-3 grade dolomite (Wutai) is 78 yuan/mt, and for 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price for 75 ferrosilicon in the Shaanxi region ranges from 5,600 to 5,700 yuan/mt.

Supply and Demand

Recently, with the confirmation of news regarding the gradual resumption of production at downstream magnesium plants, the demand for dolomite in the market is expected to see significant growth. It is worth noting that some dolomite mines in the Wutai area are currently undergoing maintenance, with capacity somewhat constrained. Against this backdrop, it is anticipated that supply pressure will increase in other dolomite-producing regions, and market demand may further concentrate in areas such as Hubei and Wenxi, Shanxi. Last week, the futures market for ferrosilicon fluctuated upward, with a 2.08% increase MoM. In the spot market, the supply of ferrosilicon was relatively sufficient. Coupled with a recent decrease in ferrosilicon costs, downstream bearish sentiment was strong. It is expected that the upward momentum for ferrosilicon prices will be insufficient in the future.

Magnesium Ingot

Prices

Today, the transaction price for magnesium ingots in the Fugu area ranges from 16,200 to 16,300 yuan/mt, unchanged from the previous working day. The China FOB price remains stable at 2,210-2,300 US dollars/mt.

Supply and Demand

Recently, influenced by news related to the resumption of production in the main producing areas, the market has been more bearish on future magnesium prices. Last week, magnesium ingot prices fluctuated rangebound, with a tug-of-war between supply and demand evident. At the beginning of the week, magnesium prices were under pressure. As magnesium prices fell below 16,000 yuan/mt mid-week, magnesium producers' willingness to cut prices decreased, the availability of low-priced goods in the market contracted, and some traders chose to enter the market to restock, driving an increase in downstream procurement volume. Market transactions recovered somewhat, with the transaction price for magnesium ingots returning to 16,250 yuan/mt.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price for magnesium alloy in China ranges from 17,800 to 18,000 yuan/mt, and the mainstream FOB price for magnesium alloy in China ranges from 2,480 to 2,510 US dollars/mt.

Supply and Demand

Last week, the prices of raw materials for magnesium ingots continued to fluctuate. Additionally, die-casting plants and clients in the 3C sector had completed their periodic stockpiling. Currently, the magnesium alloy market is generally in a wait-and-see attitude. Influenced by this, downstream purchase willingness has become more conservative, and market trading activity has declined, with overall transaction performance being sluggish.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China ranges from 17,500 to 17,700 yuan/mt, and the China FOB price ranges from 2,380 to 2,450 US dollars/mt.

Supply and Demand

The magnesium powder market is showing signs of stabilization. Traders are currently adopting a wait-and-see attitude, and producers who are about to enter the summer break are not preparing large orders. Magnesium powder production remains stable, with prices fluctuating in line with upstream magnesium ingot prices.