Raw Material Prices Show Clear Divergence Downstream Purchasers Generally Adopt Wait-and-See Attitude [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Summary on August 20:

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 is 5,800-5,900 yuan/mt.

Supply and demand

Currently, the price of dolomite is stable, and the market supply remains sufficient. On the demand side, driven by the gradual resumption of production at magnesium plants, procurement demand has shown a growth trend. It is expected that the price of dolomite will continue to remain firm in the future. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,678, down 3.53% or 208 yuan. In the spot market, with the release of macroeconomic news, rational sentiment has returned to the ferrosilicon spot market. Additionally, downstream demand has not significantly improved, and market demand support has weakened, leading to a weak performance in the ferrosilicon spot market prices.

Magnesium ingot

prices

As of the last working day, the mainstream quotation for magnesium ingots in Fugu was 17,200-17,300 yuan/mt, down 50 yuan from the previous working day. The China FOB price was reported at 2,380-2,420 US dollars/mt.

Supply and demand

Yesterday, magnesium prices showed a weak and stable trend. Currently, it is in a period of tug-of-war between sellers and buyers. Downstream demand has not been released as expected, and factories have a weaker stance in refusing to budge on prices. This week marks the high-frequency tendering period for overseas downstream enterprises. Currently, the FOB quotation situation is divided. Order quotations after October are very cautious and generally on the high side. The current price transaction range for spot or one-month delivery is 2,380-2,400 US dollars/mt.

Magnesium alloy

prices

As of the last working day, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,850-18,950 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,580-2,640 US dollars/mt.

Supply and demand

Yesterday, the overall price of magnesium alloy was closely linked to the price of upstream raw materials. On the supply side, some magnesium alloy producers have entered the stage of routine equipment maintenance. On the demand side, downstream enterprises have adopted a cautious procurement attitude, with a procurement strategy centered around "restocking on demand and meeting rigid needs". Overall, the current magnesium alloy market is showing a pattern of "weak supply and demand". Magnesium alloy processing fees are expected to consolidate at the bottom, and magnesium alloy market prices will still fluctuate around the price of raw material magnesium ingots.

Magnesium powder

prices

As of the last working day, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,400-18,600 yuan/mt, and the China FOB price was 2,530-2,570 US dollars/mt.

Supply and demand

Currently, the procurement rhythm in the magnesium powder market has slowed down. As the support from upstream raw material suppliers refusing to budge on prices weakened, the wait-and-see sentiment among downstream buyers further intensified, with a general tendency to wait for prices to fall further before restocking. The momentum of purchasing has not been fully unleashed, and overall demand still needs to recover and be boosted.