Raw Materials Held Steady, Magnesium Ingots Under Pressure, Demand for Alloys and Magnesium Powder Diverged [SMM Magnesium Morning Meeting Minutes]

SMM September 11 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

Ex-factory prices, excluding tax, for 1-3 cm dolomite (Wutai) were 78 yuan/mt, and for 2-4 cm dolomite (Wutai) were 128 yuan/mt; mainstream ex-factory prices for 75 ferrosilicon in Shaanxi were 5,800-5,900 yuan/mt.

Supply and Demand

Dolomite prices remained stable, with ample market supply. Magnesium plants maintained normal production and routine stockpiling, supported by strong demand. Delivery-to-factory prices for dolomite were expected to hold steady. Yesterday, the most-traded ferrosilicon futures contract sf2509 closed at 5,628, down 0.04% or up 2, with futures fluctuating rangebound. In the spot market, ferrosilicon producers supplied steadily. Steel tenders provided bottom support as they entered the market gradually. HBIS's September tender volume was 3,151 mt, up 316 mt MoM. Spot ferrosilicon prices awaited guidance from the next round of steel tender prices.

Magnesium Ingot

Prices

As of the last working day, mainstream quotations for magnesium ingot in Fugu were 16,800-16,900 yuan/mt, down 50 yuan/mt from the previous working day; China's FOB was quoted at 2,350-2,410 $/mt.

Supply and Demand

Trading activity in the magnesium ingot market was active yesterday, with good transaction performance, but prices continued to decline. According to SMM survey statistics, the day's trading volume exceeded 1,000 mt, with mainstream transaction prices in the range of 16,750-16,800 yuan/mt, and some transaction prices fell further. On the export front, recent orders decreased significantly, with downstream players mostly adopting a wait-and-see attitude and limited acceptance of high quotations, resulting in a stalemate between supply and demand. Current FOB prices remained on the high side, quoted at 2,380-2,410 $/mt. Magnesium ingot prices were expected to have further downside room this week.

Magnesium Alloy

Prices

As of the last working day, mainstream tax-included ex-factory prices for magnesium alloy in China were 18,450-18,600 yuan/mt; China's FOB was 2,570-2,630 $/mt.

Supply and Demand

Magnesium alloy prices moved in the doldrums, following raw material magnesium ingot prices. Supply side, magnesium alloy producers maintained normal production pace. Demand side, supported by new demand from NEV and EV, spot supply at some magnesium alloy producers was tight, which was expected to help keep alloy processing fees firm.

Magnesium Powder

Prices

As of the last working day, mainstream tax-included ex-factory prices for 20-80 mesh magnesium powder in China were 18,000-18,100 yuan/mt; China's FOB was 2,520-2,560 $/mt.

Supply and Demand

Trading activity in the magnesium powder market was active yesterday. Supply side, magnesium powder producers' operating rate rose, production increased, and they actively entered the market to purchase magnesium ingot raw materials; demand side, downstream customers' purchase willingness strengthened. Affected by the decline in the price of raw material magnesium ingots, cost support for magnesium powder weakened, and overall offers were subsequently lowered.