Raw Materials Hold Steady, Magnesium Ingot Slightly Rises; Short-Term Fluctuations Dominate Amid Tug-of-War Between Sellers and Buyers [SMM Magnesium Morning Meeting Minutes]

SMM December 19 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

Ex-factory prices, excluding tax, for 1-3 cm dolomite (Wutai) were 108 yuan/mt, flat from the previous working day; prices for 2-4 cm dolomite (Wutai) were 128 yuan/mt, flat from the previous working day. The mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,600-5,650 yuan/mt.

Supply and Demand

Recently, dolomite prices in Wutai 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 were expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract 2603 closed at 5,546, up 58. In the spot market, some ferrosilicon smelters recently underwent maintenance shutdowns due to losses, leading to a slight reduction in market supply. However, considering that concentrated stockpiling by steel mills had largely concluded, spot transactions were insufficient. Ferrosilicon prices were expected to consolidate at the bottom.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingot in Fugu was 15,550-15,600 yuan/mt, up 50 yuan/mt from the previous working day. The Chinese FOB price was quoted at $2,200-2,250/mt.

Supply and Demand

Yesterday, magnesium plants' reluctance to sell intensified further, with mainstream plants collectively raising their quotations. The market quotation range was concentrated at 15,600-15,700 yuan/mt. However, downstream end-users had limited willingness to accept high-priced resources, adopting a cautious procurement attitude. Actual market transactions remained sluggish, with only a few spot orders concluded at 15,600 yuan/mt yesterday. Overall, short-term magnesium market demand lacked sufficient support, digestion of high-priced resources was hindered, and magnesium prices lacked sustained upward momentum. Prices were expected to maintain a sideways movement in the short term.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,500-17,700 yuan/mt. The Chinese FOB price for magnesium alloy was $2,460-2,500/mt.

Supply and Demand

Recently, magnesium alloy prices held up well. Cost side, reluctance to sell was relatively strong in the raw material magnesium ingot market, and magnesium ingot prices rose slightly yesterday. Regarding the magnesium alloy market's supply-demand, pushed by previous growth in end-use demand, a supply-demand imbalance emerged in the magnesium alloy market. Most alloy plants were operating on production schedules, which kept magnesium alloy processing fees firm.

Magnesium Powder

Price

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 16,700-16,900 yuan/mt. The Chinese FOB price was $2,370-2,400/mt.

Supply and Demand

Yesterday, magnesium powder prices stabilized following the raw material trend, but the overall market remained weak. Market sentiment is sluggish, with downstream enterprises primarily engaging in just-in-time procurement, while the supply side generally adopts a sales-based production strategy. In terms of raw material magnesium ingot procurement, magnesium powder producers mostly maintain a wait-and-see attitude and enter the market cautiously.