The tug-of-war between sellers and buyers continues, and the short-term market pattern of remaining in the doldrums is difficult to break [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Summary on September 12:

Magnesium Raw Material

Prices

The ex-factory price (excluding tax) for 1-3 cm dolomite (Wutai) was 78 yuan/mt, and the ex-factory price (excluding tax) for 2-4 cm dolomite (Wutai) was 128 yuan/mt; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,900 yuan/mt.

Supply and Demand

Current dolomite prices are stable, with market supply remaining sufficient. Magnesium plants are conducting regular stockpiling, and demand is strong, with delivery-to-factory prices of dolomite expected to remain stable. The most-traded 2509 ferrosilicon futures contract closed at 5,624, down 0.18%, or 10 points. In the spot market, ferrosilicon producers are maintaining a steady supply, and steel tenders are providing bottom support. However, considering HBIS's tender pricing at 5,700 yuan/mt in September, down 330 yuan MoM, the ferrosilicon market remains cautious.

Magnesium Ingot

As of the previous working day, the mainstream quotations for magnesium ingot in Fugu were 16,700-16,800 yuan/mt, down 100 yuan/mt from the previous working day; China's FOB price was $2,340-2,400/mt.

Supply and Demand

Magnesium prices continued to decline yesterday. Some magnesium plants quoted 16,700 yuan/mt in the morning, but there was a strong wait-and-see sentiment among downstream buyers, leading to a sluggish trading atmosphere. Most inquiries were around 16,600 yuan/mt, and trading volume at 16,700 yuan/mt was low. Subsequently, some major production area magnesium plants had to lower their quotes, with transactions in the main production areas occurring at 16,650 yuan/mt. Overall, yesterday's trading showed a characteristic of reduced prices and increased volumes, primarily due to the stimulation of transactions by lower prices. Some downstream customers still have a wait-and-see sentiment, and orders have not been fully released, resulting in insufficient upward momentum. The current magnesium market still needs to reach a consensus on the transaction period to push up magnesium prices.

Magnesium Alloy

As of the previous working day, the mainstream tax-inclusive ex-factory price for magnesium alloy in China was 18,450-18,600 yuan/mt; China's FOB price was $2,560-2,620/mt.

Supply and Demand

Magnesium alloy prices are in the doldrums, following the weak performance of magnesium ingot prices. On the supply side, magnesium alloy producers are maintaining a normal production pace. On the demand side, supported by new demand from NEVs and EVs, some magnesium alloy manufacturers are experiencing tight spot supply, which is expected to help keep alloy processing fees firm.

Magnesium Powder

Prices

As of the previous working day, the mainstream tax-inclusive ex-factory price for 20-80 mesh magnesium powder in China was 17,900-18,100 yuan/mt; China's FOB price was $2,510-2,550/mt.

Supply and Demand

Yesterday, the magnesium powder market was generally active, but prices were under pressure due to the decline in magnesium ingot prices, weakening cost support. Supply side, magnesium powder plants' operating rates continued to rise, production steadily increased, and they actively purchased magnesium ingot raw materials to ensure production; demand side, downstream purchase willingness improved, some domestic trade buyers gradually entered the market to restock, and foreign trade orders remained stable. It is expected that the magnesium powder market will continue to be in the doldrums in the short term, with price trends still influenced by magnesium ingot costs and actual transaction conditions.