SMM January 5 Magnesium Morning Meeting Minutes:
Magnesium Raw Material
Prices
The ex-factory, tax-excluded price for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the price for 2-4 cm dolomite (Wutai) was 128 yuan/mt, also flat. The mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,600-5,650 yuan/mt.
Supply-Demand
Recently, Wutai dolomite prices held steady. Magnesium producers in the main production areas maintained stable operations, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices are expected to continue holding up well. On the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,676, up 10. In the spot market, ferrosilicon exhibited a supply-demand pattern of strong supply and weak demand. Coupled with the ongoing industry off-season, short-term upward momentum in the ferrosilicon market is expected to be limited.
Magnesium Ingot
Today, the mainstream transaction price for magnesium ingots in the Fugu area was 15,900-16,000 yuan/mt, up 200 yuan/mt from the previous working day. The Chinese FOB price was quoted at $2,200-2,280/mt.
Supply-Demand
Magnesium ingot prices held up well yesterday. Leading producers showed strong reluctance to sell, while small and medium-sized producers had limited spot availability. Supported by market news and foreign trade orders, market offers were raised. However, according to SMM, transactions were relatively sluggish, with only a few essential purchase orders entering the market. Overall, supported by market sentiment, magnesium ingot prices are expected to remain firm in the short term.
Magnesium Alloy
Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,900-18,000 yuan/mt. The Chinese FOB price for magnesium alloy was $2,480-2,530/mt.
Supply-Demand
Magnesium alloy prices have held up well recently. On the raw material side, magnesium ingot prices jumped 200 yuan/mt in a single day after the New Year's Day holiday, leading to a steady increase in the benchmark price for magnesium alloy. On the supply side, producers were operating at full capacity, primarily scheduling production based on orders, resulting in persistently tight market supply. Demand side, orders from the NEV and two-wheeled EV sectors were steadily released, with demand growth significantly outpacing supply growth. Overall, magnesium alloy prices are expected to continue holding up well.
Magnesium Powder
Prices
Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,000-17,200 yuan/mt. The Chinese FOB price was $2,390-2,450/mt.
Supply-Demand
Trading in the magnesium powder market was generally stable last week. Demand side, recent order performance was relatively active, with concentrated release of year-end orders prompting magnesium powder producers to generally enter a stockpiling phase. Supply side, they continued to implement a sales-based production strategy, and their willingness to purchase raw material magnesium ingots increased. Supported by raw material costs, magnesium powder prices are expected to remain stable.
