Today, Magnesium Industry Chain Prices Remained Generally Stable, with Divergence in Supply-Demand Patterns Across Various Segments [SMM Magnesium Morning Meeting Minutes]

SMM December 26 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory, tax-excluded price for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the price 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 producers in the main production area maintained stable operations, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices were expected to continue holding up well. The previous working day, the most-traded ferrosilicon futures contract, si2603, closed at 5,692, up 78. Ferrosilicon futures fluctuated rangebound. Spot market-wise, the ferrosilicon market exhibited a supply-demand pattern of strong supply and weak demand. Coupled with the ongoing industry off-season, short-term upward momentum in the ferrosilicon market was expected to be limited.

Magnesium Ingot

Today, the mainstream quotation for magnesium ingots in the Fugu area was 15,650-15,700 yuan/mt, flat from the previous working day. The Chinese FOB price was $2,200-2,280/mt.

Supply and Demand

Yesterday, magnesium producers' offers remained firm. Some downstream customers nearing delivery deadlines entered the market to restock. The market pattern of strong supply and weak demand fostered strong bearish sentiment among downstream customers. Overall market purchasing was relatively rational, and market transactions were generally sluggish. Considering the approaching holidays, magnesium producers' offers remained relatively firm. However, as most customers had completed necessary restocking, magnesium prices were expected to gradually stabilize.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,750-17,950 yuan/mt. The Chinese FOB price for magnesium alloy was $2,470-2,520/mt.

Supply and Demand

Yesterday, domestic magnesium alloy market prices showed a trend of holding up well. The supply-demand pattern remained tight, with leading magnesium alloy producers' order books scheduled until February next year, indicating significant undersupply. Supported by this, leading producers recently raised their magnesium alloy processing fee quotes again. However, acceptance of the new quotes by downstream die-casting plants and vehicle manufacturers was limited. The pace of implementing the new magnesium alloy prices was expected to slow down in the short term.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 16,800-17,000 yuan/mt. The Chinese FOB price was $2,370-2,430/mt.

Supply and Demand

Yesterday, transactions in the magnesium powder market were generally stable. Domestic trade demand continued the pattern of purchasing as needed, while foreign trade orders were largely finalized. Currently, most magnesium powder producers are in the stockpiling phase. On the supply side, produce based on sales was widely implemented, and recent purchase willingness for the raw material, magnesium ingot, was relatively active. It is expected that the price of magnesium powder will remain stable, supported by raw material costs.