Magnesium Market in the Doldrums, Prices Still Face Downward Pressure [SMM Magnesium Morning Meeting Minutes]

SMM November 20 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. In the previous working day, the most-traded ferrosilicon futures contract, 2509, closed at 5,462, down 24 points or 0.44%. Ferrosilicon futures fluctuated downward. In the spot market, ferrosilicon supply showed a slight contraction. Demand side continued the pattern of purchasing as needed, with downstream customers maintaining rational purchase willingness. Considering current losses for ferrosilicon producers, ferrosilicon prices are expected to maintain a bottom consolidation trend in the short term.

Magnesium Ingot

Prices

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

Supply-Demand

Magnesium prices remained stable yesterday. However, producers' willingness to sell and downstream customers' purchase willingness both saw a slight rebound. Downstream customers generally held a bearish sentiment, maintaining a wait-and-see stance, with the overall market showing a weak, stable pattern. For foreign trade, only a small number of inquiries and orders existed, but supplier quotations remained firm. Overall, market expectations for future price weakness remained strong.

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

Magnesium alloy prices held steady recently. Supply side, most producers maintained orderly production schedules according to order pace, with moderate supply stability. Demand side, new demand from the two-wheeled electric vehicle sector continued to be released, providing strong support for the magnesium alloy market. However, considering that raw material magnesium ingot prices are under pressure, magnesium alloy prices are expected to fluctuate in sync with magnesium ingot prices in the short term.

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 maintained a downward trend, with prices continuing to decline, and new order growth remained slow. Although the current price is already at a relatively low level, downstream purchase willingness remains generally weak, with market transactions mostly consisting of essential demand orders. Demand continues to be sluggish, and it is expected that the price of magnesium powder may still decline further.