The Decline in Magnesium Prices Temporarily Halted, Demand Recovery Still Awaits Observation [SMM Magnesium Morning Meeting Minutes]

SMM September 3 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

The ex-factory tax-excluded prices for 1-3 cm dolomite (Wutai) stood at 78 yuan/mt, while 2-4 cm 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

Currently, dolomite prices remain stable with ample market supply. Demand side, driven by the gradual resumption of magnesium plant operations, procurement demand has shown growth, and dolomite prices are expected to maintain firmness. Last week, the most-traded ferrosilicon futures contract 2509 closed at 5,528, up 0.77% or 42 points. Spot market-wise, the accelerated production resumptions by magnesium ingot producers have provided strong support for 75% ferrosilicon demand, with prices anticipated to stay firm.

Magnesium ingot

prices

As of the previous working day, mainstream quotations in Fugu region were flat at 16,950-17,050 yuan/mt. China’s FOB price was quoted at $2,340-2,400/mt.

Supply and demand

Yesterday, Fugu producers showed strong reluctance to budge on prices, raising offers to 17,000-17,200 yuan/mt, temporarily halting the downward trend. Downstream response to the price stabilization gradually emerged, with transactions strengthening to over 1,000 mt at mainstream transaction prices of 16,900-17,000 yuan/mt. On the export front, downstream buyers largely adopted a wait-and-see stance toward current offers, with low acceptance. Traders remained cautious, particularly adopting conservative strategies for October and beyond orders. Current mainstream tax-inclusive offers hovered around $2,450/mt, with overall export order activity subdued. Going forward, whether magnesium prices can rise on producers’ price-firming stance depends on actual demand follow-through. However, with overseas quarterly orders gradually being released, prices may remain under pressure in late September.

Magnesium alloy

prices

As of the previous working day, China’s mainstream tax-inclusive ex-factory prices for magnesium alloy ranged between 18,600-18,750 yuan/mt, while FOB prices stood at $2,550-2,620/mt.

Supply and demand

Yesterday, magnesium alloy prices largely followed the upward trend in the ingot market. Some downstream enterprises engaged in just-in-time procurement, with buying sentiment slightly recovering. Processing fee-wise, low alloy inventory provided a buffer, keeping alloy processing fees firm. Some alloy producers reported upward price adjustments, though actual transactions awaited market confirmation.

Magnesium powder

prices

As of the previous working day, mainstream tax-inclusive ex-factory prices for 20-80 mesh Chinese magnesium powder were quoted at 18,150-18,350 yuan/mt, with FOB prices at $2,500-2,550/mt.

Supply and Demand

The magnesium powder market has recently shown sluggish performance, with generally insufficient purchase willingness. Approaching the National Day military parade period, market demand has not exhibited the anticipated signs of release. However, as raw material prices continue to rise, the downstream mentality of "rushing to buy amid continuous price rise and holding back amid price downturn" is gradually emerging. The market outlook requires attention to downstream restocking trends and raw material price fluctuations post-parade. If demand gradually recovers, it is expected to drive market prices toward stabilization and rebound.