Raw material prices remain stable, and magnesium products continue to consolidate at a high level [SMM Magnesium Morning Meeting Summary]

Summary of SMM's magnesium morning meeting on August 6:

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 ranges from 5,800 to 5,900 yuan/mt.

Supply and demand

Yesterday, dolomite prices remained stable, with sufficient market supply. However, demand increased as magnesium plants resumed production, and it is expected that prices will remain firm in the future. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,716, up 1.03% or 58 yuan. In the spot market, due to the previous price increase, the profit margins of ferrosilicon manufacturers have recovered somewhat, leading to an increase in ferrosilicon production. Additionally, the impact of the off-season has weakened, and market demand has also increased. The supply and demand of the ferrosilicon market have shown a dual growth trend, and it is expected that ferrosilicon prices will remain stable in the future.

Magnesium ingot

prices

As of the last working day, the mainstream quotation of magnesium ingots in Fugu remained at 17,050-17,150 yuan/mt, unchanged from the previous working day. The China FOB price is $2,340-2,440/mt.

Supply and demand

Yesterday, the magnesium ingot market was sluggish, with magnesium plants still strongly refusing to budge on prices. Some magnesium plants offered futures orders at 17,050 yuan/mt. Driven by the rise in coking coal futures, market inquiries increased, but actual domestic and foreign trade transactions remained sluggish due to the traditional off-season. According to the SMM survey, some magnesium plants announced production suspensions and maintenance at the beginning of August, and the magnesium market is expected to see a new tug-of-war between sellers and buyers in mid-August.

Magnesium alloy

prices

As of the last working day, the mainstream tax-included ex-factory price of magnesium alloy in China ranges from 18,700 to 18,800 yuan/mt, and the mainstream FOB price of magnesium alloy in China is $2,580-2,660/mt.

Supply and demand

Magnesium alloy prices have remained stable alongside magnesium ingot prices. In terms of supply, magnesium alloy production declined overall in July, and some magnesium alloy manufacturers also showed an upward trend. Production capacity in Qingyang has been gradually put into operation according to plan, with a slight increase in production. In terms of demand, the cost-effectiveness of magnesium alloy continues to stand out, coupled with favorable news such as the new national standard for EVs, stimulating an increase in magnesium alloy demand. Overall, the magnesium alloy market is in supply-demand balance, with some manufacturers indicating undersupply. It is expected that magnesium alloy prices will continue to remain firm in the future.

Magnesium powder

prices

As of the last working day, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranges from 18,250 to 18,450 yuan/mt, and the China FOB price is $2,510-2,580/mt.

Supply and demand

Currently, the magnesium powder market is experiencing a weak supply and demand situation. The prices of upstream raw materials remain at a high level, but downstream purchase willingness is low, resulting in a strong wait-and-see atmosphere in the market. The price negotiation between buyers and sellers continues.