SMM Magnesium Morning Meeting Summary on July 29:
Magnesium raw material
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 futures market for ferrosilicon fluctuated downward, with the most-traded ferrosilicon futures contract 2509 closing at 5,840, a decrease of 2.44% or 146 yuan. In the spot market, ferrosilicon producers have a strong reluctance to budge on prices, with scarce low-priced supplies on the market. The new round of steel procurement prices are rising slowly.
Magnesium ingot
prices
As of the last working day, the mainstream quotation for magnesium ingots in Fugu remained at 17,100-17,200 yuan/mt, up 50 yuan. The China FOB price is 2,350-2,460 US dollars/mt.
Supply and demand
The quotation for the magnesium ingot market continues to rise slightly, mainly driven by producers' persistent strategy of refusing to budge on prices. Although the mainstream transaction price remains stable at 17,100 yuan/mt, the market trading atmosphere is sluggish, with actual trading volume shrinking. Demand side, affected by the rapid rise in magnesium prices in recent days, most orders failed to be released last week. Domestic and overseas buyers generally adopted a wait-and-see attitude, with potential demand still existing. Overall, it is expected that the magnesium market will maintain a narrow rangebound fluctuation pattern in the future.
Magnesium alloy
prices
As of the last working day, the mainstream tax-included ex-factory price of magnesium alloy in China is 18,750-18,850 yuan/mt, and the mainstream FOB price of magnesium alloy in China is 2,600-2,670 US dollars/mt.
Supply and demand
Yesterday, magnesium alloy prices followed the firm trend of magnesium ingot prices, with downstream acceptance of current magnesium alloy prices being low. Downstream purchases were mainly for just-in-time procurement, and the overall trading atmosphere in the magnesium alloy market was sluggish.
Magnesium powder
prices
As of the last working day, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China is 18,300-18,500 yuan/mt, and the China FOB price is 2,520-2,590 US dollars/mt.
Supply and demand
The magnesium powder market currently shows a trend of delayed demand release. Due to the upward pressure on raw material costs, product prices have risen passively. After downstream users completed their periodic stockpiling at the beginning of the month, the overall market procurement rhythm has slowed down significantly, with wait-and-see sentiment growing, leading to a decrease in actual trading activity compared to the previous period.
