The magnesium market overall was under pressure, with strong wait-and-see sentiment from both upstream and downstream sectors. [SMM Magnesium Morning Meeting Minutes]

SMM November 28 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. Magnesium plants 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. For the previous working day, the most-traded ferrosilicon futures contract 2603 closed at 5,390, down 24. In the spot market, approaching year-end, some ferrosilicon smelters sold at low prices to recoup funds, leading to a downward shift in the transaction center. However, considering ferrosilicon quotations are near the cost line, spot market prices for ferrosilicon are expected to consolidate at the bottom.

Magnesium Ingot

Prices

Today, the mainstream quotation for magnesium ingots in the Fugu area was 16,000-16,050 yuan/mt, flat from the previous working day; the Chinese FOB price was $2,240-2,340/mt.

Supply and Demand

Yesterday, the magnesium ingot market saw insufficient follow-up procurement from downstream sectors, leading to a gradual fading of bullish sentiment, with prices pulling back again to the 16,000 yuan/mt level. For foreign trade, recent transactions were still dominated by forward orders, reflecting persistently weak actual demand. At the start of the week, traders, driven by the mentality to "rush to buy amid continuous price rise and hold back amid price downturn," conducted some stockpiling, but for received forward orders, they mostly planned to purchase closer to the delivery date. Against the backdrop of overall sluggish demand, traders' profit margins continued to narrow, and industry competition intensified.

Magnesium Alloy

Prices

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

Supply and Demand

Magnesium alloy prices moved in sync with magnesium ingot trends. Currently, leading magnesium alloy enterprises maintained relatively firm quotations with low willingness to sell at low prices. Influenced by factors including the pressured operation of raw material magnesium ingot prices and the supply-demand pattern being in a phase of transition, magnesium alloy prices are expected to show pressured fluctuations in the short term, with upward momentum appearing insufficient for now.

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 Chinese FOB price was $2,420-2,480/mt.

Supply and Demand

The downward trend in the magnesium powder market yesterday was not reversed. Under the dual pressures of weakened support from raw material costs and insufficient new orders, prices were still in the process of hitting bottom. Although some manufacturers have seen a phased increase in procurement volume, this is mostly concentrated in rigid demand and the execution of long-term agreements, failing to generate sustained momentum for recovery. Bearish sentiment still dominates the market trading atmosphere, and the weak pattern is expected to persist in the short term.