Quotations Held Steady with Sluggish Transactions, Market Dominated by Wait-and-See Sentiment [SMM Magnesium Morning Meeting Minutes]

SMM September 5 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

The ex-factory tax-excluded prices for 1-3 cm dolomite (Wutai) were 78 yuan/mt, and for 2-4 cm dolomite (Wutai) were 128 yuan/mt. The mainstream ex-factory price of 75# ferrosilicon in Shaanxi was 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 production, procurement demand has shown an upward trend. Considering the recent abundant rainfall in Shanxi, making it difficult to find transport trucks, dolomite delivery-to-factory prices are expected to remain firm. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,496, down 0.72% or 40 points. Spot market, affected by the downward fluctuation of black futures, trading sentiment was sluggish, coupled with weak end-use demand from steel mills recently, 72# ferrosilicon spot prices remained in the doldrums.

Magnesium ingot

prices

As of the previous working day, mainstream quotations for magnesium ingots in Fugu were 16,960-17,050 yuan/mt, up 50 yuan/mt from the previous working day; China's FOB price was quoted at $2,360-2,420/mt.

Supply and demand

Yesterday, mainstream quotations from domestic magnesium plants remained at 17,000 yuan/mt. Despite high quotations, downstream acceptance was generally low, with strong bearish sentiment in the market. Actual transactions were mainly just-in-time procurement, and overall trading sentiment was sluggish. With the gradual resumption of magnesium plant production, market supply pressure increased, and magnesium prices are expected to remain under pressure in the short term, with significant upward resistance.

Magnesium alloy

prices

As of the previous working day, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,600-18,750 yuan/mt, and the mainstream FOB price was $2,570-2,640/mt.

Supply and demand

Yesterday, magnesium alloy prices generally fluctuated upward, mainly following the upward trend of the magnesium ingot market. Positive signals emerged on the demand side of the magnesium alloy market. Supply side, magnesium alloy producers' inventories were at low levels. Demand side, some downstream enterprises entered the market for procurement based on production needs, slightly improving the overall procurement atmosphere compared to the previous period, effectively supporting market confidence. Overall, the magnesium alloy market showed a tight balance between supply and demand, and alloy processing fees are expected to remain firm.

Magnesium powder

prices

As of the previous working day, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,150-18,350 yuan/mt, and the FOB price was $2,520-2,580/mt.

Supply and Demand

Magnesium powder producers generally exhibited weak purchase willingness. Although raw material prices experienced a slight rise, downstream sectors mostly maintained a wait-and-see attitude, anticipating further price corrections before entering the market. If subsequent demand gradually materializes, magnesium powder prices may receive phased support. In the short term, prices are expected to remain stable with minor fluctuations.