SMM Magnesium Morning Meeting Minutes on September 5:
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 gradual production resumptions at magnesium plants, procurement demand has shown an increasing trend. Considering recent abundant rainfall in Shanxi and transportation difficulties, dolomite delivery-to-factory prices are expected to fluctuate upward. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,496, down 40 (0.72%). Spot market-wise, affected by fluctuating downward trends in ferrous futures, trading activity was sluggish, compounded by weak end-use demand from steel mills, with 72# ferrosilicon spot prices in the doldrums.
Magnesium ingot
prices
As of the previous working day, mainstream quotations in Fugu were 16,960-17,050 yuan/mt, up 50 yuan/mt. China’s FOB price was quoted at $2,360-2,420/mt.
Supply and demand
Domestic magnesium plants maintained mainstream quotations at 17,000 yuan/mt yesterday. Despite high offers, downstream acceptance remained low amid strong bearish sentiment, with actual transactions dominated by just-in-time procurement, resulting in overall sluggish trading. With gradual production resumptions at magnesium plants, supply pressure has increased, suggesting magnesium prices will continue under pressure with notable upward resistance in the short term.
Magnesium alloy
prices
As of the previous working day, China’s mainstream tax-included ex-factory price for magnesium alloy was 18,600-18,750 yuan/mt, with FOB prices at $2,570-2,640/mt.
Supply and demand
Yesterday, magnesium alloy prices fluctuated upward, tracking the rise in magnesium ingot markets. Positive demand signals emerged: supply side, manufacturer inventories were low; demand side, some downstream enterprises engaged in procurement based on production needs, slightly improving market activity and bolstering confidence. Overall, the magnesium alloy market shows a tight balance, with alloy processing fees expected to remain firm.
Magnesium powder
prices
As of the previous working day, China’s mainstream tax-included ex-factory price for 20-80 mesh magnesium powder was 18,150-18,350 yuan/mt, with FOB prices at $2,520-2,580/mt.
Supply and Demand
The purchase willingness of magnesium powder producers remained generally weak. Although raw material prices experienced a slight rise, downstream enterprises mostly maintained a wait-and-see attitude, anticipating further price adjustments before entering the market. If demand gradually recovers in the subsequent period, magnesium powder prices may receive phased support. In the short term, prices are expected to maintain a stable but slightly fluctuating trend.
