Magnesium Alloy Supply and Demand Both Strong, Prices Firm; Magnesium Ingot Under Pressure [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Summary on October 23:

Magnesium Raw Material

Prices

The ex-factory price (excluding tax) of 1-3 cm dolomite (Wutai) is 108 yuan/mt, unchanged from the previous working day; the ex-factory price (excluding tax) of 2-4 cm dolomite (Wutai) 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, the domestic dolomite market has been stable. Both supply and demand sides are providing strong support to the market. The current production order in the main magnesium-producing areas is stable, with a continuous release of rigid demand for dolomite, forming a robust support. It is expected that the dolomite prices will hold up well. On the previous working day, the most-traded 2509 futures contract for ferrosilicon closed at 5,538, an increase of 0.55% or 58 points. Ferrosilicon producers are operating normally, but the procurement speed from end-users has slowed down, leading to insufficient demand support, and the ferrosilicon prices are in the doldrums.

Magnesium Ingot

Prices

Today, the mainstream quotations for magnesium ingot in Fugu area are 16,350-16,450 yuan/mt, a decrease of 50 from the previous working day. The China FOB price is $2,330-2,390/mt.

Supply and Demand

The oversupply situation in the magnesium ingot market continues to be evident. Over the past two days, transactions have been sluggish, with no concentrated procurement seen from downstream buyers, and demand remains weak. Under the overall bearish sentiment, coupled with the continuous accumulation of factory inventories, the expectation for further price reductions is gradually increasing.

Magnesium Alloy

Prices

Today, the mainstream ex-factory price (including tax) for magnesium alloy in China is 18,300-18,400 yuan/mt; the China FOB price is $2,560-2,630/mt.

Supply and Demand

The magnesium alloy market continues to show strength, with both supply and demand being robust. Although many producers have increased their operating rates and primary magnesium enterprises are accelerating their downstream industry chain layout, the market supply pressure has not been alleviated due to the ongoing tightness of spot resources. The demand side is particularly impressive, with active downstream procurement and enterprises generally reporting sufficient orders. Some manufacturers have scheduled production for several weeks ahead. With strong fundamental support, magnesium alloy prices continue to fluctuate at highs, and the industry maintains high prosperity.

Magnesium Powder

Prices

Today, the mainstream ex-factory price (including tax) for 20-80 mesh magnesium powder in China is 17,550-17,750 yuan/mt; the China FOB price is $2,470-2,570/mt.

Supply and Demand

The magnesium powder market is stable, mainly driven by rigid demand. Due to weakened cost support, magnesium powder prices are under pressure. Currently, domestic demand remains stable, while external demand is mediocre. Enterprises generally produce based on sales. The market maintains a weak balance, with downstream purchasing as needed, and prices fluctuate rangebound in line with primary magnesium.