SMM Magnesium Morning Meeting Minutes on February 25:
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 5,950 yuan/mt.
Supply and Demand
Recently, Wutai dolomite prices held steady. Leading dolomite producers in Wutai remained suspended, with dolomite from other regions filling the supply gap. Considering the slight increase in logistics and freight costs before the Chinese New Year, dolomite prices were expected to hold up well upon delivery. Pre-holiday, the most-traded ferrosilicon futures contract, 2603, closed at 5,470 yuan, down 6 yuan, with ferrosilicon futures in the doldrums. In the spot market, ferrosilicon producers and downstream steel mills exhibited a strong wait-and-see sentiment, with most market transactions focused on fulfilling previous orders. Ferrosilicon prices were expected to remain stable in the short term.
Magnesium Ingot
Today, the mainstream transaction price for magnesium ingots in the Fugu area was 16,400-16,500 yuan/mt; the Chinese FOB price was $2,360-2,410/mt.
Supply and Demand
Domestic magnesium ingot mainstream quotations held at 16,500-16,600 yuan/mt today, with sluggish transaction activity throughout the day. Since the market reopened after the holiday, most magnesium producers in Shaanxi maintained their pre-holiday quotations, keeping overall market prices stable. Regarding the supply-demand pattern, before the Chinese New Year, half of the magnesium producers in Shaanxi had completed futures presales, with some enterprises' presale orders scheduled until early March, leading to a clear divergence in regional inventory—large producers experienced inventory buildup while small and medium-sized producers held low inventory. Demand side, pre-holiday stockpiling by downstream enterprises generally covered the period around the Lantern Festival, and some downstream players were still executing previous futures orders, resulting in insufficient immediate demand follow-up and weak market demand support. Overall, the magnesium ingot market saw a stalemate between sellers and buyers in the short term, with the overall market maintaining a wait-and-see mode.
Magnesium Alloy
Today, the mainstream tax-included ex-factory price for Chinese magnesium alloy was 18,650-18,850 yuan/mt; the Chinese FOB price for magnesium alloy was $2,640-2,690/mt.
Supply and Demand
Yesterday, magnesium alloy benchmark prices and processing fees overall held steady. By grade, influenced by the magnesium-aluminum price spread, the spread between AZ91 and AM50, AM60 mostly maintained at around 200 yuan/mt recently. On the supply-demand front, magnesium alloy producers operated normally overall, with magnesium alloy enterprises still primarily producing against order backlogs. The market maintained a tight supply-demand balance, providing strong support for processing fees. Magnesium alloy processing fees were expected to remain firm after the holiday.
Magnesium Powder
Prices
Today, the mainstream tax-included ex-factory price for 20-80 mesh Chinese magnesium powder was 17,600-17,800 yuan/mt; the Chinese FOB price was $2,520-2,570/mt.
Supply-Demand
Post-holiday, the magnesium powder market remained generally stable, with prices edging up slightly, supported by firm raw material quotations. The current market is primarily focused on fulfilling previous orders, with limited new orders. On the export front, some new orders are expected to be placed soon. Domestic trade side, due to sufficient pre-holiday stockpiling, most downstream enterprises plan to initiate a new round of procurement after resuming work in March.
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