The magnesium market exhibited a divergent trend overall, with cost support coexisting with cautious demand. [SMM Magnesium Morning Meeting Minutes]

SMM December 23 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 area maintained stable production, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices were expected to hold up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,640 on the previous working day, up 26. Ferrosilicon futures fluctuated rangebound. In the spot market, ferrosilicon supply decreased slightly, and inventory pressure at some ferrosilicon plants dropped significantly, leading to some improvement in ferrosilicon fundamentals. However, considering the ongoing industry off-season, upward momentum in the ferrosilicon market was expected to be limited in the short term.

Magnesium Ingot

Prices

Today, the mainstream transaction price for magnesium ingots in the Fugu area was 15,700 yuan/mt, up 50 yuan from the previous working day. The Chinese FOB price was $2,200-2,280/mt.

Supply and Demand

Overall market trading activity was relatively sluggish yesterday, with transaction prices concentrated in the range of 15,600-15,700 yuan/mt. Although offers increased, market acceptance of high prices was limited, and trading activity did not improve significantly. Most traders indicated that stockpiling for previous orders was largely completed. Current procurement was mainly supported by rigid demand, with overall low buyer enthusiasm and a dominant wait-and-see sentiment. Given weak demand support and limited market acceptance of high-priced resources, magnesium ingot prices were expected to gradually stabilize and potentially see slight declines in the short term.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,600-17,800 yuan/mt. The Chinese FOB price for magnesium alloy was $2,460-2,520/mt.

Supply and Demand

Magnesium alloy prices held up well recently, with the market experiencing undersupply. Consequently, leading magnesium alloy producers raised their alloy processing fee quotes again. Some downstream die-casting plants and vehicle manufacturers reported limited acceptance of new order prices. The full implementation of current magnesium alloy prices still required time, and SMM would continue to monitor closely.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 16,850-17,050 yuan/mt. The Chinese FOB price was $2,370-2,430/mt.

Supply-Demand

Yesterday, trading in the magnesium powder market was relatively mediocre. Prices remained generally stable, supported by raw material costs, and showed a slight upward trend. However, end-user demand continued to be dominated by rigid procurement. On the production side, companies are currently focused on fulfilling previous orders, with most maintaining a sales-based production strategy. The overall operating rate remained around 50%. In general, the magnesium powder market continues to remain in the doldrums.