SMM Magnesium Morning Meeting Summary on July 25:
Magnesium Raw Materials
Prices
The ex-factory price (tax not included) of 1-3 grade dolomite (Wutai) is 78 yuan/mt, and the ex-factory price (tax not included) of 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price of 75 ferrosilicon in Shaanxi is 5,800-5,900 yuan/mt.
Supply and Demand
Recently, dolomite prices have remained stable, with sufficient supply. Considering the increased demand from magnesium plants resuming production, it is expected that dolomite prices will remain firm in the future. Yesterday, the ferrosilicon futures market fluctuated upward, with the most-traded fs2509 futures contract closing at 5,754, a decrease of 1.54% or 90 yuan. In the spot market, ferrosilicon spot inventory remained low. Affected by the off-season in the ferrosilicon industry, downstream procurement demand remained insufficient. The ferrosilicon market presented a situation of weak supply and demand, and it is expected that ferrosilicon prices will remain firm.
Magnesium Ingot
Prices
Yesterday, the mainstream quotations for magnesium ingots in the Fugu area increased to 17,100-17,200 yuan/mt, an increase of 200 yuan/mt from the previous working day. The China FOB price was reported at 2,350-2,450 US dollars/mt.
Supply and Demand
Magnesium ingot prices continued to rise, with the mainstream transaction price at 17,100 yuan/mt. Since the beginning of this week, magnesium prices have continued to rise, driven by favorable macro policies and rising raw material costs. However, market transactions have significantly decreased today. Some traders have taken advantage of the high prices to sell off their previously stockpiled goods at low prices, with spot transactions occurring at 16,800-16,900 yuan/mt, which has somewhat suppressed the price increases by magnesium plants. From the supply side, magnesium plant inventories have fallen below 10,000 mt due to previous low-price sales, but social inventories remain at a relatively high level. On the demand side, downstream buyers generally adopt a wait-and-see attitude, and even some buyers with orders show caution. Market demand has pulled back as prices have risen. It is expected that the magnesium ingot market will maintain a pattern of fluctuating at highs in the short term.
Magnesium Alloy
Prices
As of yesterday, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,650-18,850 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,590-2,670 US dollars/mt.
Supply and Demand
Yesterday, magnesium alloy prices remained firm at high levels, following the prices of raw materials. Currently, downstream customers have a strong fear of high prices, and as the price of magnesium ingot, the raw material, has risen to a high level, their outlook on the market has gradually turned pessimistic. Affected by the sentiment of "rush to buy amid continuous price rise and hold back amid price downturn", the trading atmosphere has been relatively sluggish recently.
Magnesium Powder
Prices
As of yesterday, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,200-18,500 yuan/mt, and the China FOB price was 2,510-2,550 US dollars/mt.
Supply and demand
Magnesium powder prices have risen in the short term due to the cost of raw magnesium ingots. However, limited by the weak demand in the downstream steel industry and the low purchase willingness of international buyers, the overall market trading atmosphere has been weak.
