Trading Remained Sluggish, Magnesium Market Operated Under Pressure [SMM Magnesium Morning Meeting Summary]

SMM Magnesium Morning Meeting Minutes, September 8:

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

Dolomite prices remained stable with ample market supply. Demand side, driven by gradual production resumptions at magnesium plants, procurement demand showed growth. Considering recent abundant rainfall in Shanxi and transportation difficulties, dolomite delivery-to-factory prices are expected to hold firm. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,598, up 106 yuan (1.93%). Spot market-wise, ferrosilicon trading was sluggish amid weak end-use demand from steel mills, with 72# ferrosilicon spot prices in the doldrums.

Magnesium ingot

pricesAs of the last working day, mainstream quotations in Fugu were 16,900-17,000 yuan/mt, down 50 yuan/mt. China’s FOB price was quoted at $2,350-2,420/mt.

Supply and demand

Last week, magnesium prices fluctuated rangebound. Early in the week, the quotation range widened among producers in key regions, with leading plants holding firm at 17,000 yuan/mt due to strong reluctance to sell, while smaller mills adjusted prices flexibly, pushing transaction prices down to 16,800 yuan/mt. However, mid-week news spurred some traders to procure, slightly recovering market transactions and pulling prices back to 17,000 yuan/mt. Overall, downstream bearish sentiment prevailed, with just-in-time procurement dominating deals. Production resumptions increased supply pressure, keeping short-term magnesium prices under pressure.

Magnesium alloy

As of the last working day, China’s mainstream tax-included ex-factory prices for magnesium alloy were 18,550-18,700 yuan/mt, with FOB prices at $2,560-2,640/mt.

Supply and demand

Last week, magnesium alloy prices generally followed the weak trend of magnesium ingots. Currently, low inventory levels provided crucial support and buffer space for prices, while recovering demand helped maintain firm alloy processing fees. Some producers reported minor upward price adjustments, though actual order execution required further observation due to market transaction pace.

Magnesium powder

prices

As of the last working day, China’s mainstream tax-included ex-factory prices for 20-80 mesh magnesium powder were 18,100-18,300 yuan/mt, with FOB prices at $2,520-2,570/mt.

Supply and Demand

Last week, the trading volume of the magnesium powder market remained generally stable, but the overall market was in the doldrums. Although the initial weekly quotations remained firm, downstream enterprises showed insufficient purchase willingness, with a strong wait-and-see sentiment. As the military parade concluded, downstream enterprises gradually resumed their procurement pace. However, influenced by the mentality of "rush to buy amid continuous price rise and hold back amid price downturn," the market generally expects prices to have further downside room. Downstream players are likely to enter the market selectively after prices undergo further adjustments.