Support for refusing to budge on prices weakens; future prices may continue to be weak [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on August 1:

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 6,696, a decrease of 6.62% or 404 yuan. In the spot market, the futures market initially jumped and then pulled back. Affected by the overall market sentiment, downstream purchasing actions have slowed down, and wait-and-see sentiment is strong. It is expected that the ferrosilicon market will be in the doldrums in the future.

Magnesium ingot

prices

: Yesterday, the mainstream quotations for magnesium ingots in the Fugu area remained at 17,100-17,200 yuan/mt, unchanged from the previous working day. The China FOB price was reported at 2,350-2,460 US dollars/mt.

Supply and demand

: Today, magnesium plants' reluctance to budge on prices has slightly weakened, with 17,100 yuan/mt low-priced goods available in the market. However, mainstream large plants still maintain firm quotations at 17,200 yuan/mt. The overall market quotation center has slightly pulled back. According to a trader, order-taking prices were low in the first half of July, while magnesium prices surged and remained high in the second half. Some orders are still at a loss. Additionally, although overseas order prices have increased recently, they are still lower than current magnesium plant quotations, leading to strong fear of high prices among downstream traders and low purchase willingness. Overall, it is expected that the magnesium market will fluctuate rangebound in the future.

Magnesium alloy

prices

: Yesterday, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,750-18,850 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,600-2,670 US dollars/mt.

Supply and demand

: Yesterday, the magnesium alloy market remained stable. Downstream market acceptance of current prices is limited, and purchasing behavior is mainly to meet rigid demand, resulting in a relatively sluggish trading atmosphere in the overall market.

Magnesium powder

prices

: Yesterday, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,300-18,500 yuan/mt, and the China FOB price was 2,520-2,590 US dollars/mt.

Supply and demand

: The magnesium powder market has maintained a stable trend recently, with quotations slightly weak. Downstream purchase willingness is weak, and market trading is sluggish. There is a general cautious wait-and-see attitude towards current prices.