Weak Demand and Supplier Concessions in Stalemate, Short-Term Market Remains in the Doldrums [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Minutes on September 8:

Magnesium raw material

prices

The ex-factory prices (excluding tax) of 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 of 75% ferrosilicon was 5,900 yuan/mt.

Supply and demand

Dolomite prices remained stable with ample market supply. Demand side, driven by the gradual resumption of magnesium plants, procurement demand showed growth momentum, and delivery-to-factory prices are expected to hold steady. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,620, up 40 (0.75%). Spot market-wise, ferrosilicon producers maintained stable supply while downstream made just-in-time procurement, keeping the supply-demand balance. Considering some producers are near cost lines, spot prices are expected to find bottom support.

Magnesium ingot

As of the previous working day, mainstream quotations in Fugu were 16,850-16,950 yuan/mt, down 50 yuan/mt. China's FOB price was quoted at $2,350-2,410/mt.

Supply and demand

Yesterday's trading centered on small magnesium plants. Early deals were concluded at 16,900 yuan/mt, but overall volume stayed limited. Later, some plants reluctantly lowered prices to 16,800 yuan/mt under inquiries from traders. SMM survey showed daily trading volume exceeded 1,000 mt. Market sentiment was dominated by "rush to buy amid continuous price rise and hold back amid price downturn," with strong wait-and-see atmosphere. Considering supply surplus, accumulating inventory, and delayed downstream demand, magnesium prices are expected to remain under pressure.

Magnesium alloy

As of the previous working day, mainstream tax-included ex-factory prices in China were 18,500-18,650 yuan/mt, with FOB at $2,570-2,630/mt.

Supply and demand

Magnesium alloy prices moved weakly following magnesium ingot. Producers maintained normal production pace. Supported by new demand from NEVs and EVs, low inventory is expected to keep alloy processing fees firm.

Magnesium powder

Prices

As of the previous working day, mainstream tax-included ex-factory prices for 20-80 mesh were 18,050-18,150 yuan/mt, with FOB at $2,520-2,560/mt.

Supply and demand

Magnesium powder market saw recovering transactions yesterday, with some domestic trade buyers gradually entering and stable foreign orders, though overall volume remained below historical levels. With the conclusion of summer break, market demand showed signs of rebound, yet the pace of growth has noticeably slowed down. Overall prices remained in the doldrums due to raw material influences.