Magnesium Market Continues to Consolidate at High Levels, Downstream Purchasing Turns Cautious [SMM Magnesium Morning Meeting Minutes]

SMM January 13 Magnesium Morning Meeting Minutes:

Magnesium Raw Materials

Price

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 5,700-5,800 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. Recently, leading dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the current high operating rates at primary magnesium plants, which provide strong support for dolomite demand, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,698 yuan, up 68 yuan. In the spot market, last week, 75# ferrosilicon showed a firm trend driven by the magnesium metal market. However, amid the traditional off-season effect, market demand showed a mediocre performance, and ferrosilicon prices are expected to fluctuate rangebound.

Magnesium Ingot

Price

Today, mainstream quotations for magnesium ingots in the Fugu area were 16,800-16,900 yuan/mt, flat from the previous working day; the China FOB price was $2,380-2,460/mt.

Supply and Demand

Yesterday, the overall market trading atmosphere was sluggish. Factories maintained a strong willingness to hold prices firm, with quotations remaining high at 16,800 yuan/mt. However, actual transactions were relatively sluggish, with transaction prices generally below market quotations and trading volume limited. The overall market showed a sluggish trend, and prices may face slight correction pressure in the short term.

Magnesium Alloy

Price

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,950-19,050 yuan/mt; the China FOB price for magnesium alloy was $2,660-2,730/mt.

Supply and Demand

Yesterday, magnesium alloy prices continued to hold steady. On the supply-demand side, magnesium alloy enterprises maintained stable operating rates, but order schedules at leading magnesium alloy producers have extended into February. Spot supply in the market remained tight, and downstream transactions followed up gradually. Overall, the future supply-demand gap is expected to drive alloy processing fees to hold up well.

Price

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 18,000-18,200 yuan/mt; the China FOB price was $2,550-2,610/mt.

Supply and Demand

Yesterday, the magnesium powder market overall held steady. The overall industry operating rate remains stable, with production continuing to implement the sales-based production strategy. Enterprise order schedules have extended into January, and some manufacturers have begun purchasing raw materials to replenish inventory. Demand side, overall growth is expected to slow down: the domestic trade market is projected to remain dominated by rigid demand, while the foreign trade market has not seen significant new orders in the short term.