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

SMM Magnesium Morning Meeting Minutes on July 8:

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

Currently, the overall price trend of the dolomite market is stable. From the supply side, inventory levels in the main production area of Wutai are sufficient, while producers in other regions are adopting dynamic procurement strategies to address localized supply gaps. Notably, recent logistics and transportation costs have fallen to their lowest levels in recent years, leading to a moderate decrease in the terminal delivery costs of dolomite products. Yesterday, the ferrosilicon futures market saw a significant upward movement, with the most-traded ferrosilicon futures contract 2509 closing at 5,494. The ferrosilicon futures market oscillated yesterday. In the spot market, with HBIS setting the tender price for 75B ferrosilicon at 5,600 yuan/mt in July, market sentiment in the ferrosilicon sector has improved, trading activity has picked up, and ferrosilicon prices have remained firm.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingot in the Fugu area ranges from 16,200 to 16,300 yuan/mt, down 50 yuan from the previous working day. The China FOB price is reported at 2,250-2,310 US dollars/mt.

Supply and Demand

As mid-week approaches, trading activity in the magnesium market has been relatively mediocre, with most transactions being just-in-time procurement at lower prices. The mainstream market quotations for 99.90% magnesium ingot range from 16,200 to 16,300 yuan/mt, and magnesium prices have remained stable. Insights from the main production areas indicate a lack of demand support recently, leading to a gradual decline in magnesium prices. However, considering the strong willingness of producers to stabilize prices on the supply side, the downside room for magnesium prices is limited.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price of magnesium alloy in China ranges from 17,850 to 17,950 yuan/mt, and the mainstream FOB price of magnesium alloy in China is 2,510-2,530 US dollars/mt.

Supply and Demand

Recently, the price trend of the magnesium alloy market has been synchronized with the decline in raw material magnesium ingot prices. From the supply perspective, due to some producers actively reducing production, market supply has slightly decreased. On the demand side, affected by the periodic reduction in international orders and the seasonal decline in domestic die-casting industry demand, overall purchase willingness has been relatively low.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranges from 17,500 to 17,700 yuan/mt, and the China FOB price is 2,400-2,460 US dollars/mt.

Supply and Demand

Following a concentrated release of volume last week, the trading enthusiasm in the magnesium powder market has pulled back recently. SMM survey indicates that although some magnesium plants are still maintaining full-capacity operations to fulfill previous orders, the downstream procurement pace has slowed down significantly, and the market has shifted to a just-in-time procurement stage.