Yesterday, Magnesium Prices Rose Sharply, and Today's Magnesium Market Continued Its Strong Trend [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Minutes for January 22:

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, also flat. The mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,800 yuan/mt.

Supply and Demand

Wutai dolomite prices held steady yesterday. Recently, top-tier dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the strong support for dolomite demand from the current high operating rates of primary magnesium producers, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract 2603 closed at 5,556 yuan, up 22 yuan. In the spot market, ferrosilicon supply remained stable, downstream procurement enthusiasm was not high, and market inventory showed a rising trend. Ferrosilicon prices are expected to be under pressure.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingots in the Fugu area was quoted at 16,300 yuan/mt, up 200 yuan/mt from the previous working day. The Chinese FOB price was quoted at $2,300-2,360/mt.

Supply and Demand

Magnesium market prices showed a fluctuating upward trend yesterday, with active market trading. In the morning session, the transaction price center stabilized in the range of 16,000-16,100 yuan/mt. Downstream demand continued to follow up, coupled with producers' growing reluctance to sell, laying the foundation for price increases. Around 3 p.m., bullish sentiment in the market intensified, and the transaction price center gradually moved upward, with the mainstream transaction price reaching 16,100-16,200 yuan/mt. By today's close, magnesium market quotes rose further, touching a high of 16,300 yuan/mt. In terms of trading volume, market activity was high today, with the single-day statistical trading volume exceeding 2,000 mt. Under the game between sellers and buyers, the market showed a pattern of rising volume and price. Overall, the release of downstream rigid demand and producers' reluctance to sell resonated, and magnesium prices may continue their strong performance in the short term.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for Chinese magnesium alloy was 18,300-18,500 yuan/mt; the Chinese FOB price for magnesium alloy was $2,580-2,620/mt.

Supply and Demand

Magnesium alloy prices were under pressure yesterday. Cost side, magnesium ingot prices weakened, and the magnesium alloy benchmark price declined slightly. Auxiliary material costs were boosted by high A00 aluminum prices, leading to a slight increase in magnesium alloy processing fees at the beginning of the month. On the supply-demand front, operations at top-tier enterprises were stable, production in Shaanxi increased slightly, and spot supply was tight. The magnesium alloy benchmark price is expected to decline slightly subsequently, while processing fees are expected to hold up well.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh Chinese magnesium powder was 17,250-17,450 yuan/mt; the Chinese FOB price was $2,450-2,500/mt.

Supply-Demand

The magnesium powder market continues to be affected by the pullback in raw material prices, with prices maintaining a falling trend. Overall orders are currently low, and overseas orders are also concentrated for shipment before the Chinese New Year, with limited release of new demand. Some producers have already entered the market to procure raw materials to replenish inventory, but the overall procurement pace remains cautious. On the demand side, it is expected to remain dominated by rigid demand. In the short term, the market lacks obvious growth momentum, maintaining an overall pattern in the doldrums.