SMM Magnesium Morning Meeting Minutes on Sep 04:
Raw material
prices
The ex-factory tax-excluded prices for 1-3 cm dolomite (Wutai) stood at 78 yuan/mt, while 2-4 cm dolomite (Wutai) was priced at 128 yuan/mt. In Shaanxi, the mainstream ex-factory price for 75% ferrosilicon ranged between 5,800-5,900 yuan/mt.
Supply and demand
Dolomite prices remained stable with ample market supply. Demand side, driven by gradual production resumptions at magnesium plants, purchase demand showed growth momentum. Dolomite prices are expected to maintain firmness. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,520, down 24 yuan (0.43%). Spot market-wise, accelerated production resumptions at magnesium ingot producers bolstered demand for 75% ferrosilicon, supporting its price firmness.
Magnesium ingot
prices
As of the last working day, mainstream quotations in Fugu region were 17,000-17,100 yuan/mt, up 50 yuan/mt from the previous session. China's FOB price was quoted at $2,360-2,420/mt.
Supply and demand
Yesterday, mainstream magnesium ingot offers held at 17,000 yuan/mt, with some leading producers quoting 17,100-17,200 yuan/mt amid strong sales resistance. Spot transactions showed sluggish downstream purchase willingness as rational sentiment returned post-news impact. The overall market remained quiet with weak upward momentum due to lack of demand support. Short-term prices are expected to stay firm.
Magnesium alloy
As of the last working day, China's mainstream tax-included ex-factory prices for magnesium alloy ranged 18,650-18,800 yuan/mt, with FOB prices at $2,550-2,620/mt.
Supply and demand
Magnesium alloy prices fluctuated upward yesterday, tracking the ingot market's rise. Demand side showed positive signals as some downstream enterprises made rigid purchases, slightly improving procurement sentiment and bolstering market confidence.
Magnesium powder
prices
As of the last working day, mainstream tax-included ex-factory prices for 20-80 mesh magnesium powder in China were 18,200-18,400 yuan/mt, with FOB prices at $2,520-2,580/mt.
Supply and demand
The magnesium powder market saw sluggish transactions yesterday. Post-National Day parade, steel mills' gradual order resumptions may bring demand recovery. Current procurement willingness remains low among powder producers. Despite slight raw material price increases, most downstream players adopted wait-and-see stance, anticipating further pullbacks before entering the market. If recent demand is gradually released, the price of magnesium powder may potentially gain phased support, with short-term trends expected to remain stable with minor fluctuations.
