The stalemate in the magnesium market continues, with buyers and sellers locked in a tug-of-war [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on July 1:

Magnesium Raw Materials

Prices

The ex-factory price (excluding tax) 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. Considering the sufficient capacity in Shanxi Wenxi, Hubei, Inner Mongolia, and other regions, it is anticipated that the price of dolomite will remain stable in the subsequent period. Yesterday, the futures market for ferrosilicon experienced volatile movements, with the most-traded ferrosilicon futures contract 2509 closing at 5,344, down 48 yuan MoM. In the spot market, downstream demand was mainly driven by just-in-time procurement, and market sentiment was generally neutral. It is expected that the price of ferrosilicon will remain stable in the subsequent period.

Magnesium Ingot

Prices

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

Supply and Demand

At the beginning of the week, some magnesium plants slightly raised their quotations. Yesterday morning, the quotation range of magnesium ingot generally revolved around 16,200-16,300 yuan/mt, with magnesium plants starting with firm quotations. However, due to the low order-taking prices of downstream foreign traders, only some domestic trade customers entered the market for procurement, resulting in relatively limited high-position trading volume. Magnesium prices remained stable overall, and the future price trend still needs to be observed based on subsequent transaction situations.

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 US dollars/mt.

Supply and Demand

Recently, with the continuous expansion of capacity by major magnesium alloy producers, the supply of magnesium alloy has continued to increase, and competition in the industry's processing fees has become increasingly fierce. The current processing fee level has been hovering at a low level. Due to the relatively weak demand for magnesium alloy in the market and the limited fluctuation range of raw material magnesium ingot prices, it is expected that the market price of magnesium alloy will maintain a pattern of minor fluctuations in the future.

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 US dollars/mt.

Supply and Demand

Quotations in the magnesium powder market remain stable. In the domestic market, downstream enterprises maintain a just-in-time procurement rhythm, with relatively cautious restocking intentions. The overseas market has entered the traditional summer break cycle, with a significant decline in inquiry activity and a generally sluggish trading atmosphere. Currently, there is a strong wait-and-see sentiment in the market, and the tug-of-war between buyers and sellers continues.