The magnesium market continued its weak consolidation, with cost support and weak demand remaining in a stalemate. [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Summary on November 14:

Magnesium raw material

prices

1-3 cm dolomite (Wutai) ex-factory price excluding tax was 108 yuan/mt, unchanged from the previous working day; 2-4 cm dolomite (Wutai) ex-factory price excluding tax was 128 yuan/mt, also unchanged from the previous working day; in Shaanxi, the mainstream ex-factory price for 75 ferrosilicon was 5,700-5,800 yuan/mt.

Supply and demand

Recently, Wutai dolomite prices have been stable, with magnesium producers in the main production areas maintaining a steady production order, continuously releasing rigid demand for dolomite, providing strong support. It is expected that dolomite prices will continue to hold up well. The most-traded silicon iron futures contract 2509 closed at 5,506, up 0.22% or 12 points. The current silicon iron market shows a trend of bottoming out and stabilizing, but the supply-demand imbalance has not been substantially alleviated, making it difficult to generate effective upward momentum. Under cost support, it is expected that silicon iron prices will fluctuate rangebound.

Magnesium ingot

prices

Today, the mainstream quotations for magnesium ingots in Fugu were 16,000-16,100 yuan/mt, down 100 yuan/mt from the previous working day; China's FOB price was $2,240-2,350/mt.

Supply and demand

Yesterday, magnesium prices continued to decline, with the trading center reaching 16,000-16,050 yuan/mt, and manufacturers showed a reluctance to sell. US dollar quotes also showed a divergence, with the main transaction range dropping to $2,240–2,280/mt. Although market inquiries were active, actual transactions were extremely sluggish, with a strong bearish sentiment among downstream buyers and a continuous downward shift in the psychological price level. Current prices have gradually approached a stage low, and it is expected that as some foreign trade orders enter the delivery date next week, they may provide some support, potentially slowing the decline. However, from an overall supply-demand structure perspective, the market remains in an oversupply situation, and the weak operation is expected to continue in the short term.

Magnesium alloy

prices

Today, the mainstream ex-factory price including tax for magnesium alloys in China was 17,950-18,100 yuan/mt; the FOB price for Chinese magnesium alloys was $2,500-2,580/mt.

Supply and demand

Recently, magnesium alloy prices have been under pressure, following the trend of magnesium ingot prices, while processing fees have remained firm. From a market supply and demand perspective, the magnesium alloy market has shown a structural imbalance in the short term, with production operating rates remaining high, and the tight supply situation has moderately eased, although most enterprises are still producing according to orders. On the demand side, new demand from two-wheeled electric vehicles is being released, providing strong support for magnesium alloy demand. Overall, the current magnesium alloy prices are still fluctuating in tandem with magnesium ingot prices.

Magnesium Powder

Price

Today, the mainstream ex-factory price, inclusive of tax, for 20-80 mesh Chinese magnesium powder was 17,250-17,450 yuan/mt; the Chinese FOB price was $2,420-2,490/mt.

Supply-Demand

Magnesium powder market prices continued to weaken, driven by declining raw material prices. Currently, there are few new orders in the market, and magnesium powder producers generally produce based on demand, presenting an overall weak and stable operational pattern. Although procurement volume at some magnesium powder plants increased this week, it was primarily to fulfill fixed monthly requirements and existing orders, and did not reflect an actual recovery in demand. Overall, the magnesium powder market remained in a relatively weak state.