The game pattern remains unchanged, with magnesium prices consolidating at a high level today [SMM Magnesium Morning Meeting Summary]

SMM August 13 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

The ex-factory tax-excluded prices for 1-3 grade dolomite (Wutai) stood at 78 yuan/mt, while 2-4 grade dolomite (Wutai) was priced at 128 yuan/mt. In Shaanxi, the mainstream ex-factory price for 75 ferrosilicon ranged between 5,800-5,900 yuan/mt.

Supply and demand

Dolomite prices remained stable with ample market supply. However, demand increased as magnesium producers resumed production, and prices are expected to maintain their firmness. The most-traded ferrosilicon futures contract 2509 closed at 5,820 yuan, up 12 yuan (0.21%). In the spot market, ferrosilicon continued to be affected by off-season sluggishness, with weak demand and insufficient upward momentum. Overall, ferrosilicon spot prices are likely to fluctuate rangebound, with further direction awaiting clear guidance from HBIS's tender price.

Magnesium ingot

prices

As of the previous working day, mainstream quotations in Fugu held steady at 17,350-17,450 yuan/mt, unchanged from the prior session. China's FOB price was quoted at $2,380-2,440/mt.

Supply and demand

In the morning, transactions were concluded at 17,350-17,400 yuan/mt, but sluggish market activity led some producers to soften their reluctance to budge on prices. Lower-priced offers emerged in the afternoon before quotes rebounded to 17,400 yuan/mt, maintaining high-level firmness. Supply-side maintenance shutdowns and low inventories kept spot supply tight, providing strong support. On the demand side, aluminum and alloy plants conducted essential restocking for domestic trade, but overall transactions were scattered, limiting upward momentum. Magnesium prices remained rangebound at elevated levels.

Magnesium alloy

prices

As of the previous working day, China's mainstream tax-included ex-factory price for magnesium alloy was 19,000-19,100 yuan/mt, while the FOB price stood at $2,610-2,670/mt.

Supply and demand

Magnesium alloy prices remained firm at high levels. A trader noted that downstream purchase willingness weakened due to sustained high prices, resulting in muted transactions.

Magnesium powder

prices

As of the previous working day, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 18,550-18,750 yuan/mt, with the FOB price at $2,530-2,590/mt.

Supply and demand

After early demand release, the magnesium powder market shifted to a wait-and-see stance, with downstream procurement slowing down significantly. Supply-side, producers' operating rates continued to rise, driving notable production growth and gradually loosening the supply-demand pattern.