Market Stalemate Intensifies, Magnesium Prices Consolidate at Bottom [SMM Magnesium Morning Meeting Minutes]

SMM November 17 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 and Demand

Recently, Wutai dolomite prices held steady, with stable production order at magnesium plants in the main production area and sustained release of rigid demand for dolomite providing strong support; dolomite prices are expected to continue holding up well. The most-traded ferrosilicon futures contract, ferrosilicon 2509, closed at 5,490 on the previous working day, down 10 yuan or 0.18%, with ferrosilicon futures fluctuating rangebound. In the spot market, on the demand side, due to weakening seasonal effects, downstream steel mills only maintained just-in-time procurement. Considering that ferrosilicon production in Ningxia was slightly impacted by environmental protection maintenance, ferrosilicon prices are expected to fluctuate rangebound.

Magnesium Ingot

Today, mainstream quotations for magnesium ingots in the Fugu area were 16,000-16,100 yuan/mt, down 100 yuan/mt from the previous working day; the Chinese FOB price was $2,240-2,340/mt.

Supply and Demand

Last week, magnesium prices moved unilaterally downward. On the supply side, a wave of production resumptions at primary magnesium smelters pushed daily primary magnesium production to around 2,200 mt, resulting in severe oversupply in the market. Some primary magnesium smelters saw weaker reluctance to sell, and with increased needs for paying electricity bills and purchasing raw materials around mid-month, some plants could only sell magnesium ingots at low prices to recoup funds. Demand side, influenced by the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, traders and buyers mostly engaged in bargain down purchasing prices, keeping magnesium prices under pressure. Overall, the pullback in coal prices weakened cost support, and ultimately, the magnesium market was under pressure this week due to oversupply and weaker procurement demand.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for the Chinese magnesium alloy market was 17,900-18,050 yuan/mt; the Chinese FOB price for magnesium alloy was $2,500-2,570/mt.

Supply and Demand

Recently, magnesium alloy prices were under pressure, moving in line with raw material magnesium ingot prices, while processing fees held up well. Market supply and demand, in the short term, the magnesium alloy market showed structural imbalance. The operating rate on the production side remained high, and the previously tight supply situation had eased appropriately, but most enterprises still followed order-based production schedules. Demand side, new demand from two-wheeled EVs was gradually released, providing strong support for magnesium alloy demand. Overall, current magnesium alloy prices continue to fluctuate in sync with raw material magnesium ingot prices.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh Chinese magnesium powder was 17,200-17,400 yuan/mt; the Chinese FOB price was $2,420-2,480/mt.

Supply-Demand

In November, the magnesium powder market continued to fall, with prices remaining under pressure and trending lower. New orders showed mediocre performance, downstream purchase willingness was generally weak, overall trading activity was sluggish, and industry wait-and-see sentiment remained strong.