Manganese Market Shows Strong Domestic and Stable External Conditions, Price Divergence Operates Under Raw Material Cost Support [SMM Manganese Morning Meeting Minutes]

SMM December 19 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 5,600-5,650 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. Magnesium plants in the main production areas maintained stable operations, 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, si2603, closed at 5,592, up 68. In the spot market, two ferrosilicon plants in Gansu switched production recently, leading to a continued reduction in the supply of standard ferrosilicon. However, considering that the concentrated stockpiling by steel mills has largely concluded, spot transactions were muted. Ferrosilicon prices are expected to lack upward momentum and fluctuate rangebound in the short term.

Magnesium Ingot

Prices

Today, the mainstream transaction price for magnesium ingots in the Fugu area was 15,550-15,600 yuan/mt, up 50 yuan/mt from the previous working day; the Chinese FOB price was quoted at $2,200-2,260/mt.

Supply and Demand

Yesterday, magnesium smelters' reluctance to sell intensified further, with major enterprises firmly holding prices firm. Offers were raised to 15,500-15,700 yuan/mt. Downstream restocking based on rigid demand further solidified the slight price increase trend. The supply landscape showed divergence: procurement for magnesium powder and foreign trade orders at the beginning of the week had depleted the inventory of small smelters. The main production area currently presented a situation of "inventory buildup at large plants and zero inventory at small plants," reducing resistance to price increases. Heat in the foreign trade market pulled back, gradually shifting to order execution and stockpiling phases. The actual transaction price for mainstream standard magnesium ingots remained at FOB $2,170-2,200/mt. Driven by previous order intake and the slight increase in domestic ex-factory prices, traders' procurement volume from plants increased slightly, and their offers to end-users also saw a mild corresponding raise.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,550-17,750 yuan/mt; the Chinese FOB price for magnesium alloy was $2,460-2,510/mt.

Supply and Demand

Recently, magnesium alloy prices held up well, primarily influenced by the cost side. The spot magnesium ingot market was tight, with strong reluctance to sell, leading to a slight price increase for magnesium ingots yesterday. On the supply-demand front, due to a previous increase in end-use demand, the magnesium alloy market experienced undersupply. Most alloy producers still needed to schedule production based on orders, and as a result, magnesium alloy processing fees held up well.

Magnesium Powder

Price

Yesterday, the mainstream ex-factory price, including tax, for 20-80 mesh Chinese magnesium powder was 16,750-16,950 yuan/mt; the Chinese FOB price was $2,370-2,410/mt.

Supply-Demand

Magnesium powder prices stabilized following the raw material trend yesterday, but the overall market remained weak. Producers are currently mainly fulfilling previous orders, and enterprises generally continue with a sales-based production strategy, with the overall operating rate maintained at around 50%. According to the SMM survey, from last week to the beginning of this week, magnesium powder producers conducted a round of concentrated procurement of raw material magnesium ingots in the market, with purchase prices mostly at the lower end of the quotation range, primarily to meet the needs of existing order production. Overall, the magnesium powder market remains in the doldrums.