SMM Magnesium Morning Meeting Summary on July 30:
Magnesium raw material
prices
The ex-factory price (excluding tax) 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 ranges from 5,800 to 5,900 yuan/mt.
Supply and demand
Recently, dolomite prices have remained stable with sufficient market supply. However, demand has increased with the resumption of production at magnesium plants, and prices are expected to remain firm. Yesterday, the futures market for ferrosilicon fluctuated upward, with the most-traded ferrosilicon futures contract 2509 closing at 6,110, up 3.52% or 208 yuan. In the spot market, ferrosilicon producers showed strong reluctance to budge on prices, with limited low-priced supplies available. The new round of steel mill tender prices rose slowly. Considering that steel mill demand has not yet improved and market sentiment is fluctuating between bullish and bearish, ferrosilicon prices are expected to fluctuate.
Magnesium ingot
prices
Yesterday, the mainstream quotations for magnesium ingots in Fugu 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
Yesterday, magnesium plants showed strong reluctance to budge on prices, collectively quoting 17,200 yuan/mt in the morning, making it difficult to find low-priced supplies at 17,100 yuan/mt. Correspondingly, traders had low purchase willingness, and market inquiries were sluggish, with a strong atmosphere of supply-demand stalemate. According to a magnesium plant manager, magnesium plants are currently producing based on orders, with zero inventory of magnesium ingots. Spot supplies require a four-day wait, and there is low willingness to sell at low prices. Considering the current tight spot supply of magnesium ingots, fluctuating sentiment in the raw material sector, and strengthening sentiment in the ferrosilicon market, magnesium ingot prices are expected to remain firm.
Magnesium alloy
prices
Yesterday, the mainstream tax-included ex-factory price of magnesium alloy in China ranged from 18,750 to 18,850 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,600-2,670 US dollars/mt.
Supply and demand
Yesterday, magnesium alloy prices remained firm, supported by the high prices of raw material magnesium ingots. However, downstream acceptance of the current prices is limited, with purchases mainly driven by immediate needs, resulting in a generally sluggish trading atmosphere in the market.
Magnesium powder
prices
Yesterday, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranged from 18,300 to 18,500 yuan/mt, and the China FOB price was 2,520-2,590 US dollars/mt.
Supply and demand
Magnesium powder market prices remained stable, with a temporary pause in the upward trend. After downstream users completed their periodic stockpiling at the beginning of the month, there is currently a temporary pause in demand release, with a growing wait-and-see sentiment, leading to a decrease in actual trading activity compared to the previous period.
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