SMM Magnesium Morning Meeting Summary on July 28:
Magnesium raw material
prices
: The ex-factory price (tax not included) of 1-3 grade dolomite (Wutai) is 78 yuan/mt, and that 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, the price of dolomite has remained stable, with sufficient supply. Considering the increased demand from magnesium plants resuming production, it is expected that the price of dolomite will remain firm in the future. On Friday last week, the futures of ferrosilicon hit the daily limit, with the most-traded ferrosilicon futures contract 2509 closing at 6,166, up 7.01% or 404 yuan. In the spot market, driven by profit recovery, the production of ferrosilicon manufacturers has shown an upward trend. Considering the current tight supply of ferrosilicon spot, the inventory pressure of ferrosilicon manufacturers is relatively limited. In terms of demand, high-priced ferrosilicon has formed a suppression on downstream procurement, with low market acceptance. Taking all factors into consideration, the price of ferrosilicon has shown a tendency to hold up well.
Magnesium ingot
prices
: Yesterday, the mainstream quotations of magnesium ingots in Fugu region remained at 17,100-17,200 yuan/mt, unchanged from the previous working day. The China FOB price was reported at 2,350-2,450 US dollars/mt.
Supply and demand
: Last week, the price of magnesium ingots surged by 800 yuan/mt, with magnesium prices fluctuating upward. Looking back at last week, the commodity market continued to heat up, with prices of various non-ferrous metals rising together. The ferrous metals sector also rose in tandem, strongly driven by the soaring price of coking coal. Affected by the sharp jump in the core raw material prices of primary magnesium such as coal and ferrosilicon, coupled with the good conditions for a phased upward trend in the magnesium market fundamentals, magnesium prices broke through the 17,000 yuan mark on Thursday this week. Correspondingly, with the multiple jumps in magnesium prices, traders' fear of high prices gradually intensified, and the trading atmosphere gradually became sluggish. The upward resistance of magnesium prices increased, and magnesium prices remained firm at high levels.
Magnesium alloy
prices
: As of the previous working day, 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
: Last week, the price of magnesium alloy remained firm at high levels following the price of raw materials. Due to the rapid increase and high magnitude of magnesium price increases, downstream acceptance of high prices was low, and downstream customers had a strong fear of high prices. Moreover, as the price of raw material magnesium ingots rose to high levels, attitudes towards the future market gradually turned pessimistic. Affected by the sentiment of "rushing to buy amid continuous price rise and holding back amid price downturn", the trading atmosphere has been relatively sluggish recently.
Magnesium powder
prices
: As of the previous working day, 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
Last week, the magnesium powder market continued to experience sluggish demand, with rising raw material costs driving passive price increases. After completing concentrated procurement at the beginning of the month, downstream users generally adopted a wait-and-see attitude, and market trading activity declined somewhat.
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