SMM Magnesium Morning Meeting Minutes, July 8:
Magnesium raw material
prices
: The ex-factory tax-excluded prices for 1-3 grade dolomite (Wutai) stood at 78 yuan/mt, while 2-4 grade dolomite (Wutai) was priced at 128 yuan/mt. In Shaanxi, the mainstream ex-factory price for 75% ferrosilicon ranged between 5,600-5,700 yuan/mt.
Supply and demand
: The dolomite market currently exhibited stable price trends. Supply side, the main production area of Wutai maintained sufficient inventory levels, while producers in other regions adopted dynamic replenishment strategies to address localized supply gaps, with dolomite prices expected to remain steady. Yesterday, ferrosilicon futures fluctuated rangebound, with the most-traded ferrosilicon futures contract 2509 closing at 5,668, up 136 yuan (2.46%). Improved market sentiment drove ferrosilicon futures to fluctuate upward. Spot market, ferrosilicon spot cargo remained tight, providing strong price floor support. However, considering sluggish off-season demand and prevalent wait-and-see sentiment among downstream buyers, ferrosilicon prices are anticipated to fluctuate rangebound.
Magnesium ingot
prices
: Mainstream tax-included ex-factory prices for Chinese magnesium alloy ranged from 18,050-18,150 yuan/mt, with mainstream FOB prices at $2,500-2,580/mt.
Supply and demand
: Magnesium prices continued rising yesterday, though high-price transactions in major production areas remained limited, with only sporadic deals concluded around 16,500 yuan. Downstream buyers faced difficulties following the uptrend, resulting in weak market trading sentiment. Some traders reported losses from fulfilling previous low-price orders, while the recent upward price fluctuations partially stimulated downstream order releases. However, cautious purchasing at elevated price levels sustained the ongoing standoff between sellers and buyers.
Magnesium alloy
prices
: Mainstream tax-included ex-factory prices for Chinese magnesium alloy stood at 17,850-17,950 yuan/mt, with mainstream FOB prices at $2,490-2,520/mt.
Supply and demand
: Recent magnesium alloy prices maintained an upward trajectory supported by cost factors, but traditional off-season pressures in domestic die-casting industries kept end-use demand subdued. Thick wait-and-see sentiment prevailed, with downstream enterprises predominantly making just-in-time procurement.
Magnesium powder
prices
: Mainstream tax-included ex-factory prices for 20-80 mesh Chinese magnesium powder ranged from 17,700-17,800 yuan/mt, with FOB prices at $2,420-2,500/mt.
Supply and demand
: Fluctuating upward raw material prices contributed to mediocre trading performance in the magnesium powder downstream market. Current trading volume primarily stemmed from early-month advance purchase orders, while new order demand showed pronounced wait-and-see tendencies.
