Shaanxi Coal Bidding: Xiaobaodang 38 Lump Coal Prices Up, Transactions at 932.73 Yuan/Ton

【SMM Weekly Magnesium Review】This week, the mainstream offer for 9990 magnesium ingots in major production regions stands at RMB 16,050-16,150/ton, up RMB 300/ton week-on-week, with FOB offers at USD 2,280-2,380/ton and an average price of USD 2,330/ton. Driven by rising costs of coal and ferrosilicon, magnesium ingot prices climbed during the week, coupled with some restocking purchases at higher prices in foreign trade; however, the overall market sees strong supply against weak demand, transactions at high prices lack momentum, and prices have already shown signs of decline in the later period. Meanwhile, there is no substantial recovery in overseas demand, with the market mostly seeing tentative inquiries, limited actual transaction volumes and obvious price suppression from buyers, keeping trading activity muted. Downstream magnesium powder and magnesium alloys passively follow the price hike of magnesium ingots; terminal demand for magnesium powder remains sluggish, with some enterprises cutting production or suspending operations, exports restricted, and inventories rising to some extent. Spot inventories of magnesium alloys are abundant, with fierce competition among peers, die-casting enterprises face insufficient orders leading to declining operating rates, and processing fees remain under continuous pressure. In the short term, the support from costs and weak demand are locked in a game, the upward momentum of magnesium prices lacks follow-up, and the market may return to range-bound movement; subsequent focus will be placed on the release of domestic and foreign orders.

【SMM Magnesium Express】On September 3, the starting auction price of Hongliulín lump coal stood at 990 yuan/ton, up 190 yuan/ton from the previous period; the auction volume reached 81,000 tons, an increase of 4,500 tons month-on-month; the average transaction price was 1,184 yuan/ton, a rise of 288 yuan/ton from the previous average. Today, both the lowest and highest auction prices came in at 1,184 yuan/ton.

【SMM Magnesium Express】From August 28 to September 3, the weekly output of national sample magnesium plants reached 23,359 tons, with a weekly operating rate of 76.64%, a month-on-month decrease of 0.94%. According to research, affected by the sudden sharp rise in prices of raw materials such as coal and ferrosilicon, four primary magnesium smelters have recently been forced to reduce or suspend production due to cost pressure or other reasons. In addition, three other primary magnesium smelters will choose to carry out maintenance subsequently. Affected by this, the output of primary magnesium smelting enterprises will show a downward trend next week.