Magnesium Market Diverged Before the Holiday, Raw Materials Held Steady While Magnesium Ingots Were Under Pressure [SMM Magnesium Morning Meeting Minutes]

SMM September 29 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 6,100-6,200 yuan/mt.

Supply-Demand

Domestic dolomite market prices held steady yesterday. Both supply and demand sides worked in synergy, providing strong support for the market. Magnesium plants in the main production areas maintained stable production operations, with sustained release of rigid demand for dolomite, forming robust support. Dolomite prices are expected to hold up well. For ferrosilicon, the most-traded contract fer2509 closed at 5,660 yesterday, down 64 yuan or 1.12%. In the spot market, spot supply of 75 ferrosilicon is tight. Supported by downstream demand, the spot price of 75 ferrosilicon rose to 6,100-6,200 yuan/mt, and profit margins for 75 ferrosilicon increased. Driven by profits, production of 75 ferrosilicon is expected to see a slight rise subsequently.

Magnesium Ingot

Prices

As of the previous working day, mainstream quotations for magnesium ingot in Fugu were 16,600-16,700 yuan/mt, down 50 yuan from the previous working day; the China FOB price was $2,400-2,440/mt.

Supply-Demand

The domestic magnesium ingot market continued in the doldrums last week, with mainstream magnesium plants generally lowering their offers to 16,600 yuan/mt. Overall market transactions were sluggish, with limited actual volume. Domestic trade orders remained stable, and some manufacturers adopted low-price sales promotions to boost shipments. Demand side performance was overall mediocre. Although domestic market order volumes were stable, they lacked growth momentum; the export market was also sluggish, with traders' purchase willingness weak. Most only executed orders according to previous shipping schedules, and new procurement demand was scarce. A wait-and-see sentiment continued to spread throughout the market.

Magnesium Alloy

Prices

As of the previous working day, the mainstream tax-inclusive 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-Demand

Recently, domestic magnesium alloy market prices held up well. Growing demand for magnesium alloy led to inverted spot inventory for most magnesium alloy producers, with many operating on production schedules and some raising their processing fees. Overall, although some alloy producers actively increased their operating rates to boost magnesium ingot supply, the undersupply market structure is difficult to reverse in the short term. The magnesium alloy market is expected to continue holding up well in the near term.

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 17,800-18,000 yuan/mt; the China FOB price was $2,560-2,600/mt.

Supply and Demand

Last week, the magnesium powder market saw active trading, which effectively boosted domestic trade demand, and the purchase willingness of magnesium powder plants significantly increased. As the National Day holiday approaches, downstream enterprises have generally shifted to a wait-and-see stance after completing phased stockpiling, and the pace of market transactions has slowed down. Export performance remained mediocre, with no significant increase in overseas orders.