Magnesium Plants Showed Weak Reluctance to Budge on Prices, Magnesium Prices Were Under Pressure Today [SMM Magnesium Morning Meeting Minutes]

SMM October 28 Magnesium Morning Meeting Minutes:

Magnesium Raw Materials

Prices

The ex-factory, tax-exclusive prices for 1-3 cm dolomite (Wutai) were 108 yuan/mt, flat from the previous working day; for 2-4 cm dolomite (Wutai) they were 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,700-5,900 yuan/mt.

Supply and Demand

Recently, domestic dolomite market prices held steady. Supply and demand sides worked in synergy, providing strong support for the market. Magnesium plants in the main production areas maintained stable production, with sustained release of rigid demand for dolomite, forming robust support. Dolomite prices are expected to continue holding up well. For ferrosilicon, the most-traded contract 2509 closed at 5,564 on the previous working day, up 20 or 0.36%. In the spot market, high semi coke prices provided cost support, but considering downstream just-in-time procurement, ferrosilicon demand support was weak. Ferrosilicon prices are expected to be under pressure in the short term.

Magnesium Ingot

As of the previous working day, mainstream quotations for magnesium ingot in Fugu were 16,450-16,550 yuan/mt, down 50 yuan from the previous working day; China's FOB price was $2,400-2,430/mt. Today, mainstream quotations for magnesium ingot in Fugu are 16,150-16,250 yuan/mt, down 50 from the previous working day; China's FOB price is $2,320-2,360/mt.

Supply and Demand

Yesterday, magnesium market transactions performed well. In the morning, some magnesium plants concluded deals at 16,200 yuan/mt, but overall trading volume was limited. Later, influenced by some traders inquiring at 16,100 yuan/mt, some magnesium plants reluctantly lowered prices to promote deals, with overall spot transaction prices centered around 16,150 yuan/mt. According to SMM survey data, total magnesium market trading volume today exceeded 1,000 mt. Market sentiment-wise, the "rush to buy amid continuous price rise and hold back amid price downturn" mentality dominated some clients' decisions, with a strong wait-and-see atmosphere. Analyzing both supply and demand sides, short-term magnesium prices face multiple pressures including supply surplus, accumulating inventory, and delayed downstream demand. Overall, prices are expected to be under pressure.

Magnesium Alloy

Today, the mainstream tax-inclusive ex-factory price for China's magnesium alloy market is 18,100-18,200 yuan/mt; China's magnesium alloy FOB price is $2,560-2,610/mt.

Supply and Demand

Recently, magnesium alloy market orders surged. The pattern of tight spot supply and inverted inventory continued to support firm magnesium alloy processing fees. The core market contradiction lies in the temporary supply-demand mismatch. Magnesium alloy enterprises currently operate at high rates. Although the tight magnesium alloy supply has eased somewhat, most enterprises still operate on a production schedule basis. Magnesium alloy spot supply remains tight, and processing fees hold up well.

Magnesium Powder

Price

Today, the mainstream ex-factory price, inclusive of tax, for 20-80 mesh magnesium powder in China was 17,350-17,550 yuan/mt; the FOB price for China was $2,430-2,530/mt.

Supply-Demand

The magnesium powder market recently experienced a phased recovery, with purchasing activity showing increased enthusiasm, and downstream domestic trade demand also trending positively. Influenced by declining raw material prices, magnesium powder quotations remained at relatively low levels. However, despite short-term improvements on the demand side, the overall market is still characterized by a weak supply-demand balance and has not yet achieved a trend reversal.