Domestic and Foreign Demand Remains Mediocre, Weighing on Trading Volume, Magnesium Prices Face Resistance Despite Staying Firm at High Levels [SMM Magnesium Morning Meeting Minutes]

SMM September 18 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

Ex-factory prices, excluding tax, for 1-3 cm dolomite (Wutai) stood at 108 yuan/mt, flat from the previous working day; for 2-4 cm dolomite (Wutai) at 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 6,150 yuan/mt.

Supply and Demand

Domestic dolomite market prices held steady yesterday. Supply and demand sides worked in synergy, providing strong support for the market. Magnesium plants in major production areas maintained stable production, with sustained release of rigid demand for dolomite forming solid support. Dolomite prices are expected to continue holding up well. The most-traded ferrosilicon futures contract, fer2509, closed at 5,786 yesterday, up 54 points or 0.96%. In the spot market, ferrosilicon producers showed strong reluctance to budge on prices, while downstream procurement was cautious, resulting in a sluggish transaction atmosphere. Considering significant cost support, ferrosilicon prices are expected to hold steady in the short term.

Magnesium Ingot

As of the previous working day, mainstream quotations for magnesium ingot in Fugu were 16,650-16,750 yuan/mt, flat from the previous working day; the China FOB price was $2,390-2,440/mt.

Supply and Demand

Domestic magnesium ingot producers' quotations remained firm yesterday, with most offers stable at 16,700 yuan/mt. However, actual market transactions were weak, with relatively limited volume. Some producers conducted sales promotions at the lower price of 16,650 yuan/mt. Demand side was mediocre both domestically and internationally. Domestic market order volumes remained stable recently but lacked significant incremental support. In the export market, traders' procurement enthusiasm was generally low, mostly focused on executing previous shipping orders, with few new purchasing activities. The overall market sentiment remained watchful.

Magnesium Alloy

As of the previous working day, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,350-18,500 yuan/mt; the China FOB price for magnesium alloy was $2,590-2,630/mt.

Supply and Demand

Domestic magnesium alloy market prices held steady yesterday. Supply side, spot supply from some alloy enterprises was tight, and with gradual adjustments to the production pace, the industry operating rate is expected to rise. Demand side, as the traditional September-October peak season approaches, downstream market demand is steadily recovering, and market procurement enthusiasm is expected to continue improving. Considering factors from both supply and demand sides, domestic magnesium alloy market prices are likely to maintain an upward fluctuation pattern in the short term.

Magnesium Powder

Prices

As of the previous working day, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,850-18,050 yuan/mt; the China FOB price was $2,560-2,600/mt.

Supply-Demand

Yesterday, the magnesium powder market maintained a rangebound pattern, with price movements closely linked to raw material costs. Approaching the National Day holiday, the domestic demand market showed signs of recovery, and procurement activities gradually resumed, driving overall demand improvement. Production remained stable, with magnesium powder plants operating at normal rates and ample supply. However, the overseas market remained sluggish, with limited release of downstream orders, and buyers mostly adopted a wait-and-see attitude. The current market is characterized by domestic outperformance relative to overseas, and the supply-demand relationship is in a weak balance. Prices are expected to continue fluctuating within a range before the holiday.