SMM January 12 Magnesium Morning Meeting Minutes:
Magnesium Raw Material
Prices
The ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory price, excluding tax, for 2-4 cm dolomite (Wutai) was 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,700-5,800 yuan/mt.
Supply and Demand
Recently, Wutai dolomite prices held steady. Recently, leading dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the strong support from the high operating rates of primary magnesium plants for dolomite demand, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract 2603 closed at 5,682 yuan, down 6 yuan. In the spot market, ferrosilicon futures shifted from strong to weak, supplier confidence also declined, downstream wait-and-see sentiment was thick, market transactions were sluggish, and ferrosilicon prices are expected to remain in the doldrums.
Magnesium Ingot
Today, the mainstream quotation for magnesium ingot in Fugu area was 16,700-16,800 yuan/mt, down 50 yuan/mt from the previous working day; the China offshore price (FOB) was $2,380-2,460/mt.
Supply and Demand
Yesterday, magnesium market transactions were sluggish. On the supply side, primary magnesium producers in the main production area held firm on their quotations, with the mainstream quotation maintained at 16,800 yuan/mt. On the demand side, traders' wait-and-see sentiment was thick, market purchases were mostly for rigid demand, and mostly involved pushing for lower prices. Overall, downstream acceptance of the current market price was not high. Overall, the supply-demand stalemate in the magnesium market is expected to intensify, and magnesium prices are likely to remain in the doldrums.
Magnesium Alloy
Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,900-19,000 yuan/mt; the FOB price for Chinese magnesium alloy was $2,670-2,730/mt.
Supply and Demand
Yesterday, magnesium alloy prices continued to hold steady. On the supply-demand front, magnesium alloy enterprises maintained stable operating rates, but order schedules for leading magnesium alloy producers have extended into February. Spot supply in the market remained tight, and downstream transactions followed up gradually. Overall, the future supply-demand gap is expected to push magnesium alloy processing fees to hold up well.
Magnesium Powder
Prices
Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,950-18,150 yuan/mt; the FOB price for China was $2,540-2,600/mt.
Supply and Demand
Yesterday, the magnesium powder market overall held steady, with prices loosening slightly due to a pullback in raw material prices. The industry's overall operating rate remained stable for the third consecutive month, and production continued to implement a sales-based production strategy. Some producers have already entered the market to purchase raw materials to replenish their inventory. Demand side, overall demand is still expected to be primarily rigid.
