The Magnesium Market Remained Generally Stable, Awaiting Demand Guidance [SMM Magnesium Morning Meeting Minutes]

SMM November 4 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 5,700-5,800 yuan/mt.

Supply-Demand

Recently, Wutai dolomite prices held steady, with stable production order at magnesium plants in the main production area, and continuous release of rigid demand for dolomite providing strong support. Dolomite prices are expected to hold up well. The most-traded ferrosilicon futures contract 2509 closed at 5,526 on the previous working day, up 0.04% or 2 yuan. In the spot market, a new round of electricity price hikes increased ferrosilicon production costs, and most ferrosilicon smelters faced losses. Affected by this, ferrosilicon producers' sentiment to hold prices firm recovered somewhat, and ferrosilicon prices are expected to hold up well.

Magnesium Ingot

Prices

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

Supply-Demand

Magnesium prices overall held firm yesterday, with the mainstream transaction range for domestic ex-factory prices at 16,100-16,150 yuan/mt, but actual market transactions showed mediocre performance. Influenced by the steady and strengthening ex-factory prices since last weekend, traders generally raised their US dollar quotations slightly, with current offers maintained at relatively high levels. Recent overseas inquiries increased, pushing actual transaction prices in US dollars up to the relatively high range of $2,270-2,350/mt. Although quotations remained firm, market transaction activity still needed further improvement.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for China's magnesium alloy market was 18,050-18,150 yuan/mt; China's magnesium alloy FOB price was $2,510-2,580/mt.

Supply-Demand

Recently, magnesium alloy prices followed magnesium ingot prices in holding up well, and magnesium alloy processing fees remained firm. Recent market orders surged, enterprise operating rates stayed high. Although the tight supply situation eased slightly, most enterprises were still in scheduled production, and spot tightness persisted, allowing magnesium alloy processing fees to remain high and firm. However, considering that magnesium alloy output gradually increased in primary magnesium production areas, low-priced sources of magnesium alloy might increase.

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; China's FOB price was $2,410-2,520/mt.

Supply-Demand

Yesterday, the overall trading activity in the magnesium powder market was mediocre, with both domestic and foreign trade orders performing modestly. Producers generally maintained a cautious pace of production based on orders, and a wait-and-see sentiment continued to dominate the market.