SMM Magnesium Morning Meeting Summary on July 23:
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 Shaanxi ranges from 5,600 to 5,700 yuan/mt.
Supply and Demand
Currently, the overall price trend in the dolomite market is stable. Magnesium plants that underwent maintenance or shutdowns in the early stage have gradually started production, leading to a slight increase in dolomite demand. Considering the current adequate dolomite supply, it is expected that dolomite prices will remain stable. Yesterday, the futures market for ferrosilicon surged significantly, with the most-traded ferrosilicon futures contract 2509 closing at 5,874, up 3.74% or 212 yuan. As the ferrosilicon futures market continues to rise sharply, the speculative demand for ferrosilicon has increased. Coupled with the tight spot supply from ferrosilicon producers, driven by market sentiment, it is expected that ferrosilicon prices will maintain a fluctuating upward trend.
Magnesium Ingot
Prices
As of yesterday, the mainstream quotations for magnesium ingots in the Fugu area have increased to 16,700-16,800 yuan/mt, with the average daily magnesium price increasing by 250 yuan/mt. The China FOB price is reported at 2,320-2,400 US dollars/mt.
Supply and Demand
The direct trigger for this price anomaly stems from the surge in raw material prices driven by the "anti-rat race" sentiment. Against the backdrop of rising raw material costs, coupled with low producer inventories and tight spot supply, magnesium ingot prices have risen rapidly. From the demand side, this week coincides with the delivery period for both domestic and international trade, prompting some traders to enter the market for procurement due to order fulfillment needs, leading to an increase in market inquiries and further supporting the price increase. In the short term, prices are expected to maintain an upward trend. Currently, overseas buyers are mostly adopting a wait-and-see attitude, coupled with stricter export policy regulations, introducing uncertainties into the export situation in H2.
Magnesium Alloy
Prices
As of yesterday, the mainstream tax-included ex-factory price for magnesium alloy in China ranges from 18,100 to 18,200 yuan/mt, and the mainstream FOB price for magnesium alloy in China ranges from 2,500 to 2,580 US dollars/mt.
Supply and Demand
Yesterday, magnesium alloy prices followed the rapid increase in raw material magnesium ingot prices. However, the sudden price surge has heightened the wait-and-see sentiment among some downstream buyers. Coupled with the off-season effect in the die-casting industry, market transactions are predominantly driven by just-in-time procurement, resulting in a generally average trading atmosphere.
Magnesium Powder
Prices
As of yesterday, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China ranges from 17,750 to 17,850 yuan/mt, and the China FOB price ranges from 2,430 to 2,510 US dollars/mt.
Supply and Demand
Affected by the upward fluctuation in raw material prices, the transaction performance in the downstream magnesium powder market has been mediocre, with new order demand showing a clear wait-and-see attitude.
