The tug-of-war between sellers and buyers continued, and magnesium prices consolidated at low levels today. [SMM Magnesium Morning Meeting Minutes]

SMM November 3 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory price, excluding tax, 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 5,700-5,900 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady, with stable production order at magnesium plants in the main production area, and continued release of rigid demand for dolomite providing strong support. Dolomite prices were expected to hold up well. The most-traded ferrosilicon futures contract, fer2509, closed at 5,500 on the previous working day, down 92 yuan or 1.65%. In the spot market, the ferrosilicon market continued to see strong supply and weak demand. However, considering that ferrosilicon producers were near the cost line, ferrosilicon prices were expected to be under pressure.

Magnesium Ingot

Today, mainstream quotations for magnesium ingots in the Fugu area were 16,100-16,200 yuan/mt, up 50 yuan/mt from the previous working day; the China FOB price was $2,270-2,340/mt.

Supply and Demand

Last week, the magnesium market showed a pattern of increasing volume and falling prices, with magnesium prices trending downward unilaterally and the price center slowly shifting lower. Specifically, the previous magnesium industry conference did not alleviate the supply-demand imbalance in the magnesium market. After a short-term rebound, magnesium prices pulled back again, with primary magnesium producers cutting prices for sales promotions. Downstream buyers, who had delayed purchases the previous week due to fear of high prices, gradually entered the market. Transactions in the magnesium market recovered noticeably. However, downstream sentiment of "rushing to buy amid continuous price rise and holding back amid price downturn" was strong, with market transactions mostly for essential stockpiling. Moreover, the resurgence of production resumptions pushed daily output in the main production area to 2,000 mt. The recovered transactions failed to effectively consume the daily magnesium ingot output, so magnesium prices were under pressure this week.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,000-18,100 yuan/mt; the China FOB price for magnesium alloy was $2,520-2,580/mt.

Supply and Demand

Recently, magnesium alloy prices followed magnesium ingot prices in being under pressure, while magnesium alloy processing fees held up well. A recent surge in market orders kept enterprise operating rates high. Although the tight supply situation eased slightly, most enterprises were still producing against order backlogs, and spot tightness persisted. Magnesium alloy processing fees remained high and firm.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,250-17,450 yuan/mt; the China FOB price was $2,410-2,520/mt.

Supply and Demand

Last week, although the continued decline in raw material prices boosted magnesium powder procurement activity to some extent, the overall market pattern of "weak supply and demand" did not change. Affected by sluggish demand from downstream steel mills, new orders for magnesium powder plants remained generally weak, with the actual transaction center shifting downward discreetly. Amid the ongoing tug-of-war between cost support and weak demand, magnesium powder prices generally showed a weak yet stable trend. This week, as magnesium ingot prices gradually hit bottom, producers' willingness to hold prices firm significantly strengthened. It is expected that magnesium powder prices will shift to a firmer trajectory.