Stable Price Strategy Dominates, Firm Trend Continued Today [SMM Magnesium Morning Meeting Minutes]

SMM December 30 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-Demand

Recently, Wutai dolomite prices held steady. Production order at magnesium plants in the main production area remained stable, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices were expected to continue holding up well. On the previous working day, the most-traded ferrosilicon futures contract, si2603, closed at 5,676, up 10. In the spot market, the ferrosilicon market showed a pattern of strong supply and weak demand, and as the industry was still in the off-season, short-term upward momentum in the ferrosilicon market was expected to be insufficient.

Magnesium Ingot

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

Supply-Demand

News of another meeting in the main production area emerged yesterday, intensifying panic sentiment among traders. Some customers entered the market for essential restocking, leading to a slight improvement in market transactions. Market quotations gradually firmed up in the afternoon, but specific transactions awaited follow-through from downstream players. Overall, with the New Year holiday approaching, buying and selling sentiment both tightened upstream and downstream. Magnesium prices were expected to remain firm.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,700-17,900 yuan/mt. The Chinese FOB price for magnesium alloy was $2,470-2,520/mt.

Supply-Demand

The magnesium alloy market held steady yesterday, with the previous round of price adjustments still being implemented slowly. On the supply side, magnesium alloy producers operated at full capacity, keeping market supply tight, with most producers working on order backlogs. On the demand side, orders from the NEV and two-wheeled EV sectors were gradually released, with demand growth far outpacing supply growth. Overall, the magnesium alloy market was expected to remain in an undersupply situation in the short term. However, considering downstream players' current low acceptance of high prices, magnesium alloy prices were expected to fluctuate at highs.

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-Demand

Trading in the magnesium powder market was generally stable yesterday. Recent order performance on the demand side was relatively active, with concentrated year-end order releases pushing magnesium powder producers into a stockpiling phase. Supply side continues to implement the sales-based production strategy, with enhanced purchase willingness for raw material magnesium ingot. Supported by raw material costs, magnesium powder prices are expected to remain stable.