SMM Magnesium Morning Meeting Summary on June 23:
Magnesium Raw Materials
Prices
The ex-factory price (tax not included) 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, as the news of downstream magnesium plants gradually resuming production has been confirmed, the demand for dolomite in the market is expected to see significant growth. It is worth noting that some dolomite mines in the Wutai region are currently undergoing maintenance, with capacity somewhat constrained. Against this backdrop, it is anticipated that the supply pressure in other dolomite-producing regions will increase, and market demand may further concentrate in areas such as Hubei and Wenxi, Shanxi. Yesterday, the ferrosilicon futures market saw a volatile performance, with the most-traded 2509 contract closing at 5,316, down 0.23% MoM. In the spot market, the supply of ferrosilicon is relatively sufficient, with downstream purchases mainly driven by immediate needs for stockpiling. Market operations are cautious, and it is expected that ferrosilicon prices will remain stable in the near future.
Magnesium Ingot
Prices
Today, the transaction price of magnesium ingots in the Fugu region ranges from 16,000 to 16,100 yuan/mt, a decrease of 200 yuan from the previous working day. The China FOB price ranges from 2,220 to 2,280 US dollars/mt.
Supply and Demand
The domestic magnesium market is experiencing a weak supply and demand situation: production-side inventory remains low, and output continues to tighten. On the demand side, due to downstream enterprises having completed low-level purchases earlier, coupled with the impact of the traditional consumption off-season, purchase willingness has significantly cooled, and market transactions are sluggish. In overseas markets, buyers have a strong bearish sentiment and generally adopt a price-driving strategy. The actual FOB transaction prices are moving towards the lower end of the quotation range, and the overall trading atmosphere is cautious. The market is currently entering a tug-of-war between sellers and buyers, and it is expected to maintain a weak consolidation trend in the short term.
Magnesium Alloy
Prices
The mainstream tax-included ex-factory price of magnesium alloy in China ranges from 17,800 to 18,000 yuan/mt, and the mainstream FOB price of magnesium alloy in China ranges from 2,480 to 2,510 US dollars/mt.
Supply and Demand
Yesterday, the prices of raw materials for magnesium ingots continued to fluctuate, and the overall magnesium alloy market is currently in a wait-and-see attitude. Downstream purchase willingness is becoming conservative, and market trading activity has declined, with overall transaction performance being relatively sluggish.
Magnesium Powder
Prices
The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranges from 17,300 to 17,500 yuan/mt, and the China FOB price ranges from 2,370 to 2,440 US dollars/mt.
Supply and Demand
The market price of magnesium powder has seen a correction due to fluctuations in raw material prices, with overall market demand currently weak. Affected by cost pressure, the profit margin of the industry has significantly contracted, intensifying price competition among producers, and the market as a whole is in the doldrums.
