1 Market Review
1 Dolomite
This week, the ex-factory price (tax excluded) of 1-3 cm dolomite (Wutai) stood at 108 yuan/mt, unchanged WoW, while that of 2-4 cm dolomite (Wutai) was 138 yuan/mt, also unchanged WoW.
This week, the domestic dolomite market maintained a stable price pattern, with a dynamic equilibrium between supply and demand and overall robust market operation. On the supply side, constrained by factors such as expired mining licenses at some small and medium-sized producers, their production resumption timelines remain uncertain, making it difficult to form new supply in the short term. Meanwhile, the supply of dolomite resources in the main magnesium metal producing areas is primarily secured by top-tier enterprises, with stable capacity releases effectively compensating for the supply gap caused by delayed production resumptions at small and medium-sized enterprises, supporting overall stable industry supply. On the demand side, performance remained strong, with producers in Shaanxi and Shanxi, the core domestic primary magnesium smelting regions, maintaining stable operating rates and sustaining procurement demand for dolomite, providing solid demand support for the market. Overall, the current dolomite market is approaching a balanced supply-demand pattern, with stable supply output and rigid demand procurement forming a beneficial match, driving market prices to maintain a stable trend.
1.2 Magnesium Ingot
1.2.1 Magnesium Ingot (Fugu, Shenmu - Main Producing Areas)
This week, magnesium prices were under pressure. As of press time, mainstream quotations for 99.90% magnesium ingot in the main producing areas remained at 15,850-15,950 yuan/mt, with the weekly average price down 150 yuan/mt MoM.
This week, magnesium prices were under pressure. High daily output increased inventory pressure on primary magnesium smelters in the main producing areas. As a result, primary magnesium smelters' reluctance to sell weakened somewhat. Coupled with the "rush to buy amid continuous price rise and hold back amid price downturn" sentiment, downstream buyers were relatively passive in procurement, leading to sluggish market inquiries. Primary magnesium smelters had no choice but to reduce prices to stimulate transactions, resulting in a continuous decline in magnesium prices. Overall, with primary magnesium production on the rise and magnesium alloy demand unable to reverse the current supply-strong, demand-weak pattern in the primary magnesium market, it is expected that the magnesium market will continue to be under pressure.
1.2.2 Magnesium Ingot (Tianjin Port - FOB China)
This week, the FOB China price was reported at $2,240-2,300/mt, with an average of $2,270/mt. The foreign trade market saw sluggish transactions this week, with inquiry orders experiencing downward pressure.
This week, FOB market quotations declined in tandem with the continuous drop in domestic magnesium ingot ex-factory prices. Affected by intensified bearish sentiment among downstream customers, market transactions were sluggish, lacking large orders. As ex-factory prices fell to around 15,800 yuan/mt, the mainstream inquiry range concentrated at $2,200-2,240/mt. Currently, traders are primarily focused on fulfilling previous orders, with overall demand remaining weak.
1.3 Magnesium Powder
This week, the mainstream ex-factory prices, including tax, for 20-80 mesh Chinese magnesium powder were 17,100-17,300 yuan/mt; the mainstream Chinese FOB prices were $2,410-$2,450/mt.
Last month saw a relatively high volume of overseas orders released in the magnesium powder market, but overall downstream demand remained weak, with orders primarily released on an as-needed basis. In November, the operating rate in the magnesium powder industry stayed at a low level of 49.88%, and order intake was not ideal. Against this backdrop, the supply of by-product magnesium ingots tightened, leading to price increases.
1.4 Magnesium Alloy
This week, the mainstream ex-factory prices, including tax, for Chinese magnesium alloy were 18,050-18,150 yuan/mt; the mainstream Chinese FOB prices for magnesium alloy were $2,500-$2,570/mt.
Domestic magnesium alloy market prices held firm this week, with the supply-demand pattern continuously optimizing. Multiple positive factors boosted market activity. Magnesium alloy production grew steadily, with core enterprises in major production areas operating at full capacity. Output from provinces like Shaanxi and Inner Mongolia helped fill the supply gap, while processing orders in Guangdong and Chongqing increased slightly, leading to relatively stable magnesium alloy supply. Demand side growth momentum was strong, supported by both policies and industry trends. The implementation of the new national standard for two-wheeled EVs in September drove demand expansion in that sector, and the lightweight trend for NEV interior components continued to increase the penetration rate of magnesium alloys. Market demand grew significantly compared to the same period last year. Overall, the magnesium alloy market remains in a tight balance. Top-tier enterprises held their quotes firm, reflecting ample industry confidence. Magnesium alloy processing fees are expected to remain firm, supporting steady market development.
2 Weekly Summary
This week, the domestic magnesium industry chain showed significant divergence. The supply and demand for dolomite tended towards balance, with stable supply from top-tier enterprises compensating for the delayed production resumptions of small and medium enterprises. Rigid procurement from primary magnesium smelters provided support, resulting in stable market operation. The magnesium ingot market faced inventory pressure due to high capacity release, compounded by downstream's "rush to buy amid continuous price rise and hold back amid price downturn" mentality, creating a supply-demand pattern of strong supply and weak demand. Both domestic and overseas markets showed weakness; while the short-term decline may pause, the overall market remains under pressure. Demand in the magnesium powder market continued to be weak, with new orders released as needed and the industry operating rate remaining low. The magnesium alloy market performed firmly. Full-capacity operation in major production areas ensured supply, while the new national standard for two-wheeled EVs and the lightweight trend in NEVs drove demand growth. A tight supply-demand balance supported the market's steady development.
