SMM Magnesium Morning Meeting Summary on September 15:
Magnesium raw material
prices
1-3 cm dolomite (Wutai) ex-factory price excluding tax was 78 yuan/mt, 2-4 cm dolomite (Wutai) ex-factory price excluding tax was 128 yuan/mt; the mainstream ex-factory price of 75 ferrosilicon in Shaanxi was 5800-5900 yuan/mt.
Supply and demand
Currently, dolomite prices are stable, with market supply remaining adequate. Magnesium producers are conducting regular stockpiling, and demand is robust, expecting delivery-to-factory prices of dolomite to remain stable; last week, the most-traded 2509 ferrosilicon futures contract closed at 5608, down 0.57%, or 32. In the spot market, ferrosilicon producers maintained stable supply, and steel mills were stockpiling ahead of the National Day holiday. Last week, ferrosilicon procurement by steel mills performed well, and under the support of demand, it is expected that ferrosilicon prices will remain stable.
Magnesium ingot
prices
As of the previous working day, the mainstream quotations for magnesium ingots in Fugu area were 16600-16700 yuan/mt, a decrease of 100 yuan/mt from the previous working day; China's FOB price was $2340-2400/mt.
Supply and demand
Last week, the magnesium ingot market saw active trading, with prices continuing to decline. Some magnesium producers' actual selling prices have dropped to 16500 yuan/mt, attracting traders to actively purchase, with a cumulative trading volume reaching 1600 mt by last Friday. In foreign trade, quotations remained stagnant, with about 80% of traders unwilling to take on new overseas orders, even as ex-factory prices decreased, they still quoted higher tax-inclusive prices. However, some orders with a shipping date of the 23rd were concluded at lower prices, indicating that the current market sellers and buyers are still in a standoff.
Magnesium alloy
prices
As of the previous working day, the mainstream tax-inclusive ex-factory price for magnesium alloys in China was 18300-18450 yuan/mt; China's FOB price was $2560-2610/mt.
Supply and demand
Magnesium alloy prices, dragged down by upstream magnesium ingot prices, remain in the doldrums. On the supply side, magnesium alloy producers are operating smoothly without significant capacity fluctuations; on the demand side, the continuous release of demand from emerging sectors such as NEVs and electric transportation has become the core driving force, and some manufacturers are already facing tight spot supply. The structural contradictions between supply and demand will provide strong support for magnesium alloy processing fees, which are expected to remain firm.
Magnesium powder
prices
As of the previous working day, the mainstream tax-inclusive ex-factory price for 20-80 mesh magnesium powder in China was 17800-18000 yuan/mt; China's FOB price was $2510-2550/mt.
Supply and Demand
Last week, the magnesium powder market saw increased trading activity, with downstream procurement demand gradually recovering and the overall market atmosphere improving. Some domestic trade buyers began to restock, while foreign trade orders also maintained stable releases. Price-wise, due to weaker raw material prices, cost support was insufficient, and magnesium powder prices continued their downward trend.
