Rising costs and heightened sentiment drive magnesium prices up, while differentiated demand and cautious procurement curb product price increases [SMM Weekly Magnesium Review]

This week, the magnesium ingot market generally fluctuated rangebound, involving multiple links such as dolomite, magnesium ingot, magnesium alloy, and magnesium powder.

Supply & Demand Analysis of Dolomite Market

Supply side: Currently, the dolomite market has sufficient supply. Although some magnesium plants underwent maintenance and shutdowns in the early stage, which might have had a certain impact on the short-term supply of dolomite, as these magnesium plants gradually started production and resumed operations, there has been no tight supply situation for dolomite, and the overall supply has remained stable. Demand side: Demand has increased slightly. As magnesium plants that underwent maintenance and shutdowns in the early stage gradually resumed production, the demand for dolomite has increased. Overall, the growth in demand has been limited and has not yet formed a strong boosting effect on the market. Currently, the dolomite market is in a state of sufficient supply and slightly increasing demand, with a relatively balanced supply and demand. Based on this, it is expected that dolomite prices will remain stable.

Supply & Demand Analysis of Magnesium Ingot Market

This week, the actual supply from magnesium plants that have resumed production in the main producing areas is still relatively limited, and magnesium plants generally have a tendency to hold back sales. At the same time, as magnesium plants in the main producing areas gradually enter the summer maintenance period, future supply may further tighten. The market bearish sentiment triggered by the loose supply in the past will gradually fade away. Recently, downstream procurement has been concentrated and released, and the demand side has been relatively active. Driven by the positive sentiment in the overall market, downstream purchase willingness for magnesium ingots has increased, pushing up magnesium prices. Currently, the magnesium ingot market is in a state of tight supply and concentrated demand release, with the tight supply on the supply side and the increase in demand jointly pushing magnesium prices to continue rising at a high level. Market expectations are expected to shift from bearish to bullish, with strong sentiment for price support.

Supply & Demand Analysis of Magnesium Alloy Market

The supply of magnesium alloy is closely related to the price of magnesium ingots. As magnesium ingot prices rise at a high level, the supply cost of magnesium alloy increases. However, there is currently no clear information indicating a shortage in magnesium alloy supply, and the supply situation mainly follows fluctuations in raw material prices. Downstream die-casting plants have a low acceptance of the current price increase in magnesium alloy and have a low willingness to enter the market for procurement recently. Most die-casting plants have stated that they will enter the market at an appropriate time after subsequent price pullbacks, and current demand is weak. The magnesium alloy market is currently in a state of rising supply costs and weak demand, with obvious resistance from the demand side to prices. In the short term, insufficient demand may inhibit further price increases.

Supply & Demand Analysis of Magnesium Powder Market

The production of magnesium powder relies on magnesium ingots as raw materials. Affected by the upward fluctuation in magnesium ingot prices, the supply cost of magnesium powder has increased, which in turn has driven up magnesium powder prices. However, there is currently no mention of special issues in the supply of magnesium powder itself, and the supply situation is mainly affected by raw material prices. The demand from downstream steel enterprises is weak, and their procurement volume of magnesium powder is limited. Meanwhile, overseas buyers continue to wait and see, and have not yet entered the market for large-scale purchases, resulting in a relatively sluggish overall demand. The magnesium powder market is in a state of rising supply costs and insufficient support from the demand side. Although prices have risen in line with the increase in raw material costs, the weak demand has led to sluggish market transactions. The subsequent price trend may be constrained by the recovery of demand.