SMM Magnesium Morning Meeting Minutes for November 25:
Magnesium Raw Materials
Prices
The ex-factory, tax-exclusive prices for 1-3 cm dolomite (Wutai) and 2-4 cm dolomite (Wutai) were 108 yuan/mt and 128 yuan/mt, flat from the previous workday. The mainstream ex-factory price for 75% ferrosilicon in Shaanxi was 5,700-5,800 yuan/mt.
Supply and Demand
Recently, dolomite prices in Wutai held steady. Magnesium producers in the main production area maintained stable operations, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices are expected to hold up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,456 on the previous workday, up 4. Ferrosilicon futures fluctuated rangebound. In the spot market, the number of ferrosilicon smelters halting production increased, leading to a slight decline in daily output. Demand side, purchasing as needed continued, with downstream customers maintaining rational purchase willingness. Considering current losses among ferrosilicon producers, ferrosilicon prices are expected to consolidate at the bottom 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 workday. The China FOB price was $2,240-2,340/mt.
Supply and Demand
Yesterday morning, news related to "purchase and storage" continued to develop, boosting sentiment. Some buyers actively entered the market for stockpiling, significantly increasing market activity. Today, mainstream transaction prices stabilized at 16,000 yuan/mt, with some producers concluding small transactions at 16,050 yuan/mt. Supported by actual transactions, some magnesium ingot producers raised their offers to 16,100 yuan/mt. However, from a long-term perspective, the specific plan for "purchase and storage" has not yet been implemented. Short-term news is unlikely to fundamentally alter the industry's supply-demand pattern. The magnesium market is expected to remain in the doldrums.
Magnesium Alloy
Today, the mainstream tax-inclusive 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
Yesterday, magnesium alloy prices held steady. Supply side, magnesium alloy supply gradually eased, but leading producers maintained orderly production schedules according to order pace. Demand side, new demand from the two-wheeled electric vehicle and NEV sectors continued to be released, providing strong support for the magnesium alloy market. However, considering the pressure on raw material magnesium ingot prices and the shift in the magnesium alloy market's supply-demand pattern, magnesium alloy prices are expected to be under pressure in the short term.
Magnesium Powder
Price
Today, the mainstream ex-factory prices, including tax, for 20-80 mesh magnesium powder in China were 17,200-17,400 yuan/mt; the FOB price in China was $2,420-2,480/mt.
Supply and Demand
Yesterday, trading in the magnesium powder market recovered slightly, with prices remaining stable and market sentiment easing. However, judging from actual orders, overall demand in Q4 remained weak, and the market remained pessimistic about the subsequent trend.
