Magnesium Prices Remain Under Pressure at the Bottom as the Market Awaits Demand Recovery [SMM Magnesium Morning Meeting Minutes]

SMM November 18 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. Production order at magnesium plants in the main production area remained stable, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices are expected to continue holding up well. On the previous working day, the most-traded ferrosilicon futures contract, fer2509, closed at 5,566, up 36 yuan or 1.38%. Ferrosilicon futures fluctuated rangebound. In the spot market, ferrosilicon supply saw a slight decrease. Demand side, downstream customers purchased as needed. Considering the current pullback in coal prices putting semi coke prices under pressure, but with ferrosilicon producers still hovering near the cost line, ferrosilicon prices are expected to continue consolidating near the bottom.

Magnesium Ingot

Prices

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

Supply-Demand

Yesterday, magnesium prices held steady at the key level of 16,000 yuan/mt, and producers' willingness to hold prices firm increased somewhat. However, market transactions remained mediocre, with downstream players generally adopting a wait-and-see attitude. Price pressure mainly stemmed from two factors: first, plants maintained high production and high inventory levels, sustaining supply pressure; second, downstream purchasing sentiment was cautious. Although prices were already at low levels, last week's trading activity did not see a significant improvement. Long-term, the fundamental oversupply situation in the magnesium market remains unchanged. Recently, the market has seen a continuous tug-of-war between sellers and buyers, and is expected to continue in the doldrums.

Magnesium Alloy

Prices

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

Supply-Demand

Recently, magnesium alloy prices moved under pressure, following the raw material magnesium ingot prices, while the processing fee held firm. Supply side, the magnesium alloy market showed structural imbalance in the short term, but most enterprises maintained their production schedules according to orders. Demand side, new demand from two-wheeled EVs was gradually released, providing strong support for magnesium alloy demand. Overall, the magnesium alloy market moved under pressure, tracking the raw material magnesium ingot prices.

Magnesium Powder

Prices

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

Supply-demand

The magnesium powder market continued its downward trend, with prices remaining under pressure and new orders showing sluggish growth. Downstream purchasing enthusiasm was generally low, market trading activity was subdued, the overall atmosphere was dominated by a wait-and-see approach, and the industry widely adopted a cautious stance.