Magnesium market in a stalemate, magnesium prices remain stable for now [SMM Magnesium Morning Meeting Summary]

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 is 5,600-5,700 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 area are currently undergoing maintenance, with capacity somewhat restricted. 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 futures market for ferrosilicon fluctuated downward, with the most-traded contract 2509 closing at 5,288, down 0.58% MoM. In the spot market, the supply of ferrosilicon is relatively sufficient, with downstream procurement mainly focused on just-in-time stockpiling. Market operations are cautious, and currently, market participants are waiting for guidance on steel procurement prices next month.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingot in the Fugu area is 16,000-16,100 yuan/mt, unchanged from the previous working day. The China FOB price is 2,220-2,280 US dollars/mt.

Supply and Demand

Recently, magnesium plants have shown a significant lack of enthusiasm for shipping goods, generally choosing to hold back sales. Affected by the collective price-holding behavior of magnesium plants, the number of market inquiries has slightly declined. Buyers are adopting a wait-and-see attitude towards the current prices, and market transactions are severely lacking in follow-through. It is difficult for buyers and sellers to reach a consensus on transactions, and overall trading performance is sluggish.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price of magnesium alloy in China is 17,600-17,800 yuan/mt, and the mainstream FOB price of magnesium alloy in China is 2,480-2,510 US dollars/mt.

Supply and Demand

Recently, raw material prices have been under pressure. Affected by the sentiment of "rush to buy amid continuous price rise and hold back amid price downturn," the magnesium alloy market has a strong wait-and-see sentiment. Downstream procurement is still mainly focused on just-in-time procurement, and overall trading performance is sluggish.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China is 17,300-17,500 yuan/mt, and the China FOB price is 2,370-2,440 US dollars/mt.

Supply and Demand

Today, the magnesium powder market is operating smoothly, with both supply and demand being relatively weak. The low prices of raw materials are expected to promote production and stimulate downstream demand. Currently, the overall trading volume is relatively small.