The tug-of-war between sellers and buyers continues, with magnesium prices remaining weak and under pressure [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Summary on October 15:

Magnesium raw material

prices

1-3 cm dolomite (Wutai) ex-factory price excluding tax is 108 yuan/mt, unchanged from the previous working day; 2-4 cm dolomite (Wutai) ex-factory price excluding tax is 128 yuan/mt, also unchanged from the previous working day; in Shaanxi, the mainstream ex-factory price for 75 ferrosilicon is 6,000-6,100 yuan/mt.

Supply and demand

Recently, domestic dolomite market prices have been stable. Both the supply and demand sides are providing strong support to the market. The current production order of magnesium plants in the main producing areas is stable, with continuous release of rigid demand for dolomite, forming a strong support. It is expected that dolomite prices will continue to hold up well. In the previous working day, the most-traded 2509 futures contract for ferrosilicon closed at 5,406, down 0.95%, or 52 points. The ferrosilicon futures market fluctuated downward. In the spot market, steel mill demand weakened, and market transactions were average, with a strong wait-and-see sentiment. It is expected that ferrosilicon spot prices will remain in the doldrums.

Magnesium ingot

prices

As of the previous working day, the mainstream quotations for magnesium ingots in Fugu area were 16,200-16,300 yuan/mt, down 50 yuan from the previous working day; China's FOB price was $2,320-2,370/mt.

Supply and demand

Domestic magnesium prices fell again yesterday, with mainstream transaction prices stabilizing at 16,200 yuan/mt, combined with an average daily trading volume of about 1,500 mt last week. After the holiday, market sentiment changed, and the "rush to buy amid continuous price rise and hold back amid price downturn" sentiment spread, intensifying the wait-and-see atmosphere as prices declined. Although transactions picked up after the price adjustment yesterday, producers entered a phased destocking cycle, but the supply-demand structure has not fundamentally improved. In the overseas market, export demand in September was front-loaded, and Q4 orders are expected to sharply decrease. It is expected that magnesium prices will continue to be in the doldrums in the short term.

Magnesium alloy

prices

As of the previous working day, the mainstream ex-factory price including tax for magnesium alloys in China was 18,150-18,250 yuan/mt; the FOB price for Chinese magnesium alloys was $2,560-2,600/mt.

Supply and demand

Recently, magnesium alloy prices have fluctuated upward. On the supply side, magnesium alloy manufacturers continue to face tight spot supply and inventory inversion. Most established magnesium alloy manufacturers are increasing their operating rates, and primary magnesium producers in the main producing areas are extending downstream, leading to rapid growth in magnesium alloy supply. On the demand side, many magnesium alloy manufacturers report undersupply, and it is difficult to obtain spot inquiries in the magnesium alloy market. It is expected that magnesium alloy prices will follow the trend of primary magnesium prices and fluctuate downward in the near future, but they may fluctuate at highs due to current demand support.

Magnesium Powder

Price

As of the previous working day, the mainstream ex-factory prices, including tax, for 20-80 mesh magnesium powder in China were 17,400-17,600 yuan/mt; the FOB price in China was $2,470-2,540/mt.

Supply and Demand

Recently, the magnesium powder market has continued to weaken, influenced by declining raw material prices. Domestic trade transactions remained stable, while overseas orders generally adopted a wait-and-see stance. With weakening cost support and sluggish overseas demand, prices are expected to remain under pressure in the short term.