SMM Magnesium Morning Meeting Summary on August 13:
Magnesium raw material
prices
The ex-factory price (tax not included) for 1-3 grade dolomite (Wutai) is 78 yuan/mt, and for 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price for 75 ferrosilicon in the Shaanxi region ranges from 5,800 to 5,900 yuan/mt.
Supply and demand
Dolomite prices have remained stable, with ample market supply. However, demand has increased with the resumption of production at magnesium plants, and it is expected that prices will remain firm. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,744, down 2.51% or 126 yuan. The spot market shows weak supply and demand, with tight spot supply of ferrosilicon. However, influenced by the improvement in profit margins, ferrosilicon supply has shown an upward trend. On the demand side, the off-season effect still affects ferrosilicon demand, with weak demand support. It is expected that both supply and demand for ferrosilicon will show a slow upward trend, and ferrosilicon prices will fluctuate rangebound in the short term.
Magnesium ingot
prices
As of the last working day, the mainstream quotation for magnesium ingots in the Fugu region remained at 17,300-17,400 yuan/mt, unchanged from the previous working day. The China FOB price is reported at 2,390-2,430 US dollars/mt.
Supply and demand
Yesterday, magnesium prices continued to face downward pressure, with sluggish market transactions, leading to a slight increase in magnesium plant inventories. Under these circumstances, the reluctance to budge on prices among some magnesium plants has loosened. This morning, low-priced goods have appeared on the market, with transaction prices ranging from 17,200 to 17,250 yuan/mt. However, downstream purchase enthusiasm is low, and overall market transactions are sluggish. On the supply side, due to some magnesium plants entering the shutdown and maintenance phase, coupled with low market inventories, spot supply has become tight, providing significant bottom support for magnesium prices. However, overall transactions are relatively scattered, making it difficult to form a concentrated purchasing force, resulting in a lack of upward momentum for magnesium prices. Overall, it is expected that magnesium prices will maintain a weak running pattern in the short term.
Magnesium alloy
prices
As of the last working day, the mainstream tax-included ex-factory price for magnesium alloys in China ranges from 19,000 to 19,100 yuan/mt, and the mainstream FOB price for magnesium alloys in China ranges from 2,610 to 2,670 US dollars/mt.
Supply and demand
Currently, magnesium alloy prices remain high. On the supply side, some producers have entered the regular equipment maintenance cycle, leading to a slight contraction in market supply. On the demand side, influenced by the firm high prices, downstream enterprises mainly restock based on rigid demand, with generally weak active purchase willingness. Overall, the current magnesium alloy market shows a "weak supply and demand" pattern, and short-term prices may face certain downward pressure.
Magnesium powder
price
As of the last working day, the mainstream tax-included ex-factory prices of Chinese magnesium powder with a mesh size of 20-80 were 18,550-18,750 yuan/mt; the FOB price in China was $2,530-$2,590/mt.
Supply and demand
Currently, the magnesium powder market is influenced by the stalemate in raw material prices, with a sluggish trading atmosphere and slightly loosened quotes from traders. Downstream enterprises are cautiously observing the market, waiting to enter the market for purchases after further price corrections. The overall market shows a tug-of-war between sellers and buyers, with a weak consolidation pattern likely to continue in the short term.
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