Magnesium prices fluctuate rangebound, with strong wait-and-see sentiment in the market [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on June 26:

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 market ranges from 5,600 to 5,700 yuan/mt.

Supply and Demand

Recently, with the confirmation of downstream magnesium plants gradually resuming production, the demand for dolomite 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 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 fluctuated upward, with the most-traded 2509 contract closing at 5,374, down 1.86% MoM. In the spot market, the supply of ferrosilicon is relatively sufficient. Entering the traditional off-season, downstream demand support is weak, and traders only maintain just-in-time stockpiling. In the short term, ferrosilicon prices will remain in the doldrums.

Magnesium Ingot

Prices

Today, the transaction price for magnesium ingots in the Fugu region ranges from 16,100 to 16,200 yuan/mt, up 100 yuan from the previous working day. The China FOB price remains unchanged at 2,220-2,280 US dollars/mt.

Supply and Demand

The market continues to exhibit a pattern of narrow fluctuations. Producers tentatively raise prices, but demand fails to keep up. Trading activity declines after the conclusion of large-order procurements. Following the end of concentrated procurement in overseas markets, a wait-and-see sentiment has returned, with actual transaction prices still below 2,200 US dollars/mt. Currently, supply and demand are in a state of weak equilibrium, and it is expected that prices will maintain sideways movement in the short term.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price for magnesium alloy in China ranges from 17,700 to 17,900 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

Yesterday, the price of magnesium ingots, a raw material, rebounded slightly, leading to an upward movement in magnesium alloy prices. As the traditional off-season for the die-casting market approaches, downstream procurement orders have decreased, with market purchases primarily driven by just-in-time needs. Overall transaction performance has been mediocre.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in the Chinese market ranges from 17,400 to 17,600 yuan/mt, and the China FOB price ranges from 2,370 to 2,440 US dollars/mt.

Supply and Demand

Magnesium powder market prices have slightly increased in line with raw material costs. Currently, production is primarily focused on digesting existing inventory, with overall production showing a contraction trend. Downstream procurement demand remains persistently sluggish, and the market trading atmosphere is sluggish, with a strong wait-and-see sentiment.