Transaction Follow-Up Was Weak, Magnesium Prices Were Under Pressure Today [SMM Magnesium Morning Meeting Minutes]

SMM December 3 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory, tax-excluded prices for 1-3 cm dolomite (Wutai) were 108 yuan/mt, flat from the previous working day; for 2-4 cm dolomite (Wutai), 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 producers in the main production area maintained stable production operations, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices were expected to continue holding up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,546 on the previous working day, up 90. The ferrosilicon futures market fluctuated upward. In the spot market, steel mills entered tenders at the beginning of the month, supporting ferrosilicon demand. Coupled with rising costs in some production areas, ferrosilicon prices were expected to remain firm, supported by costs.

Magnesium Ingot

Today, mainstream quotations for magnesium ingots in Fugu were 15,800-15,900 yuan/mt, down 50 yuan/mt from the previous working day; China's FOB price was $2,240-2,300/mt.

Supply and Demand

Magnesium prices were under pressure yesterday. Recently, coal raw material prices continued to decline, weakening cost-side support. Combined with a supply-demand imbalance that increased inventory pressure on magnesium producers, manufacturers had to cut prices to stimulate transactions. However, the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn led to sluggish downstream procurement, resulting in mediocre market transactions.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,850-18,050 yuan/mt; China's FOB price for magnesium alloy was $2,500-2,540/mt.

Supply and Demand

Recently, magnesium alloy prices moved in sync with magnesium ingot trends. End-use demand from sectors such as NEVs and two-wheeled EVs provided significant support. Magnesium alloy producers continued to schedule production based on orders, with some leading manufacturers booked until month-end. The magnesium alloy market experienced undersupply, with spot cargo relatively tight. The magnesium alloy market was expected to maintain firm processing fees, with overall magnesium alloy prices fluctuating in tandem with raw material costs.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,050-17,250 yuan/mt; China's FOB price for magnesium powder was $2,410-2,460/mt.

Supply and Demand

Magnesium powder prices declined again yesterday, influenced by weaker raw material costs, with overall market performance remaining mediocre. However, since November, overseas orders were gradually released, leading to relatively active order intake. Despite this, market demand remained persistently weak, and magnesium powder producers generally maintained a production pace based on demand.