The stalemate in the magnesium market continues, with strong wait-and-see sentiment [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on June 27:

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 upward, with the most-traded contract 2509 closing at 5,384, up 0.98% MoM. In the spot market, driven by the futures market, the market sentiment for ferrosilicon improved, with the price of 72# ferrosilicon slightly increasing and the price of 75# ferrosilicon remaining stable.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingot in the Fugu area is 16,200 yuan/mt, unchanged from the previous working day. The China FOB price remains unchanged at $2,220-2,300/mt.

Supply and Demand

Yesterday, the magnesium market showed a trend of stabilizing at highs, with magnesium plants maintaining firm quotes. There were fewer low-priced goods in the market, and most traders held a wait-and-see sentiment. Market procurement was mainly driven by just-in-time procurement, and the overall transaction atmosphere in the magnesium market was relatively sluggish.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price of magnesium alloy in China is 17,700-17,900 yuan/mt, and the mainstream FOB price of magnesium alloy in China is $2,480-2,510/mt.

Supply and Demand

The spot price of magnesium ingot has shown a slight upward trend, driving the price of magnesium alloy products to rise synchronously. However, affected by the seasonal decline in demand from the die-casting industry, terminal procurement volumes have significantly contracted, and the market trading atmosphere is relatively sluggish, with overall trading volume showing mediocre performance.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China is 17,450-17,650 yuan/mt, and the China FOB price is $2,380-2,450/mt.

Supply and Demand

The market price of magnesium powder continues to rise, mainly driven by the increase in raw material costs. In the domestic market, downstream producers maintain a rigid procurement rhythm, with relatively cautious restocking intentions. The overseas demand side remains sluggish, with no significant improvement in buyer procurement sentiment, and the overall trading atmosphere is sluggish.