Magnesium Price Center Continues to Decline, Overall Market Remains Weak [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Minutes for December 2:

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. Magnesium producers in the main production area maintained stable production, 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, 2603, closed at 5,466, up 82. In the spot market, ferrosilicon spot prices consolidated near the bottom. Recent market transactions showed some recovery, but considering the traditional industry off-season leads to insufficient demand support, ferrosilicon prices are expected to remain stable.

Magnesium Ingot

Prices

Today, mainstream quotations for magnesium ingots in the Fugu area were 15,900-16,000 yuan/mt, down 50 yuan/mt from the previous working day; the Chinese FOB price was $2,240-2,340/mt.

Supply-Demand

Yesterday, mainstream quotations for magnesium ingots in the Fugu area held at 15,900-16,000 yuan/mt, with the transaction center further tilting towards 15,900 yuan/mt. However, overall trading activity was mediocre, and downstream procurement responses remained tepid. Producers' willingness to sell was relatively restrained, with most enterprises unwilling to see further price declines. Yet, actual transaction prices continued to edge lower, reflecting a strengthening oversupply situation. Against the backdrop of persistently weak demand and growing inventory pressure, magnesium ingot prices remained in a downward trend.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,950-18,150 yuan/mt; the Chinese FOB price for magnesium alloy was $2,500-2,560/mt.

Supply-Demand

Recently, magnesium alloy prices moved in sync with magnesium ingot trends. Supply side, the magnesium alloy supply landscape gradually loosened, but leading producers maintained orderly production schedules based on order pace, keeping spot supply relatively tight. Demand side, new demand from core application areas such as two-wheeled electric vehicles and new energy vehicles continued to materialize, providing strong and stable support for the magnesium alloy market. However, influenced by factors including pressured raw material magnesium ingot prices, magnesium alloy prices are expected to show pressured and volatile movement in the short term.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,150-17,350 yuan/mt; the Chinese FOB price was $2,410-2,470/mt.

Supply-Demand

The magnesium powder market overall showed mediocre performance yesterday, with no significant improvement in trading activity. Market demand remained weak, and transactions continued to be primarily driven by rigid demand.