






SMM Magnesium Morning Meeting Summary on July 21:
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 region ranges from 5,600 to 5,700 yuan/mt.
Supply and Demand
Currently, the overall price trend in 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 replenishment strategies to address local supply gaps. It is expected that dolomite prices will remain stable in the future. Yesterday, the ferrosilicon futures market experienced volatile movements, with the most-traded ferrosilicon futures contract 2509 closing at 5,508, up 0.95%. In the spot market, the current tight supply in the futures market has provided strong support for ferrosilicon prices at the bottom. Considering the current short-term outlook, ferrosilicon prices are expected to remain firm.
Magnesium Ingot
Prices
Today, the transaction price for magnesium ingots in the Fugu region ranges from 16,400 to 16,500 yuan/mt, up 150 yuan from the previous working day. The China FOB price is reported at 2,245-2,325 US dollars/mt.
Supply and Demand
Last Friday, the mainstream market quotation for magnesium ingots from smelters was 16,300 yuan/mt, with overall prices remaining firm. In terms of supply, magnesium plants in the main production areas have gradually resumed production, leading to a gradual increase in market supply. However, producer inventories remain low, and there is a strong reluctance to budge on prices. Demand has remained relatively stable, with the domestic market maintaining a just-in-time procurement model. Trading activity increased mid-week, with procurement volumes being considerable. Meanwhile, foreign traders actively entered the market to procure and deliver goods, providing some support. Overall, the current market is in a state of low equilibrium between supply and demand. Although demand has weakened somewhat due to the traditional off-season, the price support at the bottom remains solid.
Magnesium Alloy
Prices
The mainstream tax-included ex-factory price for magnesium alloy in China ranges from 18,000 to 18,100 yuan/mt, and the mainstream FOB price for magnesium alloy in China is 2,490-2,520 US dollars/mt.
Supply and Demand
Recently, the magnesium alloy market has shown an upward trend in prices, with the prices of raw material magnesium ingots and magnesium alloys rising simultaneously. Affected by the traditional off-season in the domestic die-casting industry, end-use demand has remained sluggish, and the market sentiment is characterized by a strong wait-and-see attitude. Downstream enterprises generally maintain just-in-time procurement. Faced with a weak market environment, magnesium alloy producers generally adopt a sales-based production strategy, and some producers have actively reduced their operating rates. The current market presents a clear pattern of weak supply and demand, with price increases mainly supported by the cost side, and actual transaction activity remaining low.
Magnesium Powder
Prices
The mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China ranges from 17,650 to 17,750 yuan/mt, and the China FOB price is 2,400-2,460 US dollars/mt.
Supply and demand
On the supply side, producers maintained stable output, with overall inventory levels remaining low. On the demand side, downstream buyers exercised caution in procurement, primarily replenishing inventory as needed, resulting in a sluggish market trading atmosphere. Following the concentrated volume surge last week, trading activity significantly pulled back this week. Magnesium powder plants reverted to a purchasing-as-needed model, with both upstream and downstream sectors exhibiting strong wait-and-see sentiment. It is anticipated that the market will continue to maintain a weak equilibrium in the short term.
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