Inquiries Sluggish, Magnesium Prices Under Pressure [SMM Magnesium Morning Meeting Minutes]

SMM November 21 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. Production order at magnesium plants in the main production area remained stable, with continuous 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 5,446 on the previous working day, down 70 yuan or 1.27%. Ferrosilicon futures fluctuated downward. In the spot market, ferrosilicon supply was relatively ample. Demand side, purchasing as needed continued, with downstream customers maintaining rational purchase willingness. Considering current losses among ferrosilicon producers, ferrosilicon prices are expected to maintain bottom consolidation in the short term.

Magnesium Ingot

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

Supply and Demand

Magnesium prices held steady yesterday. Supply side, operating rates at primary magnesium smelters in the main production area were stable, and spot supply of magnesium ingot was relatively stable. However, supported by costs, offers from first- and second-tier producers were firm. Demand side, the supply-demand pattern of strong supply and weak demand led to strong wait-and-see sentiment among downstream customers, and overall market inquiries were sluggish. But as shipping dates approached, some downstream customers made just-in-time procurement yesterday, leading to improved transactions. Overall, the pattern of strong supply and weak demand is hard to change, and magnesium prices are expected to maintain bottom consolidation.

Magnesium Alloy

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 and Demand

Magnesium alloy prices held steady recently. Supply side, most producers maintained orderly production schedules according to order pace, and supply stability was moderate. Demand side, new demand from the two-wheeled EV sector continued to be released, providing strong support for the magnesium alloy market. However, considering primary magnesium ingot prices are under pressure, magnesium alloy prices are expected to fluctuate in sync with raw material 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 downward trend in the magnesium powder market remains firm, with prices continuing to hit bottom under the dual pressures of weakening raw material cost support and a lack of new orders. Although some manufacturers have seen a phased increase in procurement volume, this is mostly due to rigid demand and the execution of long-term agreements, and has not generated substantial momentum for recovery. Overall market sentiment remains dominated by bearishness, and the weak supply-demand pattern is expected to persist in the short term.