Raw Material Costs Support Magnesium Market with Multiple Varieties Refusing to Budge on Prices, Pre-Holiday Wait-and-See Sentiment Strong, Magnesium Ingot and Powder Fluctuate [SMM Magnesium Morning Meeting Minutes]

SMM September 19 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory tax-exclusive price for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory tax-exclusive price for 2-4 cm dolomite (Wutai) was 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,900 yuan/mt.

Supply and Demand

Dolomite prices are currently fluctuating upward. Magnesium producers in the main production areas are conducting routine stockpiling for normal production, with strong support from the demand side. Wutai dolomite quotations have been raised, awaiting follow-up from downstream. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,756, up 30, a gain of 0.52%. In the spot market, ferrosilicon producers maintained stable production. On the demand side, downstream steel mill demand has recovered somewhat, coupled with pre-National Day procurement, supporting increased demand from steel tenders. Ferrosilicon prices are expected to fluctuate rangebound in the short term.

Magnesium Ingot

Prices

As of the previous working day, the mainstream quotation for magnesium ingots in Fugu was 16,750 yuan/mt, flat from the previous working day; the China FOB price was $2,380-2,420/mt.

Supply and Demand

Influenced by rising prices of raw materials such as dolomite, ferrosilicon, and coal, sentiment to hold back sales and cherish stocks has intensified, leading to another increase in magnesium producer quotations. However, overall, magnesium prices lack sustained momentum to refuse to budge on prices, and low-priced sources have emerged accordingly. The supply-demand imbalance is difficult to reverse in the short term. The export market is generally characterized by a strong wait-and-see sentiment. Traders are generally cautious about orders for October to December shipments, mostly making inquiries. Due to the approaching National Day holiday, traders have unclear expectations for October shipments. The market is expected to continue its current fluctuating trend next week.

Magnesium Alloy

Prices

As of the previous working day, the mainstream tax-inclusive ex-factory price for magnesium alloy in China was 18,400-18,550 yuan/mt; the China FOB price was $2,590-2,630/mt.

Supply and Demand

Yesterday, magnesium alloy prices held firm. On the supply side, most magnesium alloy enterprises are producing normally according to their production plans. According to SMM, some magnesium alloy enterprises have orders scheduled until early next month. Spot resources in the magnesium alloy market are tight. Affected by this, some magnesium alloy enterprises have raised alloy processing fee quotations. However, downstream die-casting plants currently have low acceptance of high prices, and the magnesium alloy market still awaits follow-up transactions.

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; the China FOB price was $2,540-2,580/mt.

Supply-Demand

The upward trend in magnesium powder prices paused yesterday, with prices remaining firm due to raw material influences. Market transactions showed mediocre performance, as most magnesium powder plants focused on fulfilling previous orders. Although production saw a slight increase, demand-side performance was mediocre. Overseas market new order transactions were limited, with overall activity remaining low. It is expected that the magnesium powder market will continue to fluctuate rangebound in the short term.