News

[SMM Magnesium Market Analysis: Magnesium Prices Are Deeply Mired, Caught in a Dilemma Between Rising and Falling—Who Will Become the Core Driving Force to Break the Current Deadlock?] Looking back at recent conditions in the magnesium market, magnesium prices repeatedly fluctuated within the 16,600-16,700 range, with a relatively slow operating pace.

[SMM Magnesium Weekly Review: Weak Supply and Demand Jointly Dominated Magnesium Price Trends, While Structural Divergence Emerged Across Segments] This week, operating trends across various products in China’s magnesium industry chain diverged, with the overall market characterized mainly by stability and rangebound fluctuations. The stalemate in market supply and demand became increasingly evident, and momentum for a unilateral market move remained insufficient. The upstream dolomite market maintained stable operations. Although a top-tier enterprise in the Wutai region suspended production, ample raw material inventory in place and timely capacity replenishment in major producing areas, coupled with a steady pace of just-in-time procurement by primary magnesium enterprises, kept prices stable without fluctuations. As the core product, magnesium ingot prices in China’s main producing areas consolidated at high levels, with mainstream transaction prices remaining stable. Market transactions showed mediocre performance, while producers demonstrated strong reluctance to sell. Against a backdrop of weak supply and demand, quoted prices fluctuated rangebound. On the export side, FOB quotations loosened slightly, and as ocean freight rates pulled back, inquiries from outside China recovered somewhat, with expectations for forward order placements. Supported by raw materials and boosted by the entry of export orders, the magnesium powder market saw firm quotations and held up well. In March, industry operating rates gradually recovered, and support from the demand side became increasingly evident. Magnesium alloy prices overall remained stable. On the supply side, as top-tier enterprises resumed production and newly added capacity gradually came on stream and ramped up output, downstream buyers mainly focused on just-in-time restocking, resulting in a pattern of strong supply and weak demand. Prices are expected to remain in the doldrums going forward. Looking across the entire industry chain, there have been no significant changes in current market fundamentals, and in the short term the market will still be dominated by steady fluctuations and marginal adjustments in some segments.

Russia’s Solikamsk Magnesium Works recently launched industrialised production of magnesium alloys containing rare earth elements such as neodymium, cerium, and lanthanum. The products combine lightweight properties with high strength and are mainly targeted at sectors including aerospace and automotive manufacturing. The plant accounts for 100% of Russia’s rare earth compound production and 75% of its magnesium capacity, and this capacity expansion further consolidates its position in the strategic metals sector. Meanwhile, the “magnesium-based hydrogen slurry” technology developed by Germany’s Fraunhofer Institute has sparked controversy. Independent analysis indicated that the technology’s overall system efficiency is only about 10, its energy density is comparable to that of lithium batteries, its cost is far higher than expectations, and its recycling chain has yet to form a closed loop. It is only suitable for demonstration scenarios at the hundred-watt level and is unlikely to achieve commercial application. The two pieces of news reflect the different technological pathways and industrialisation prospects of magnesium-based materials in high-end manufacturing and energy storage.

[Magnesium Ingot Transactions Increased Significantly, Rigid Demand Support Became More Evident, and a One-Way Market Was Unlikely in the Short Term] Today, quotations in the main production areas for 99.90% magnesium ingot were 16,600-16,700 yuan / mt, and low-priced supply in the market increased.

[Magnesium Alloys Lead New Quality Productive Forces, Hydrogen Storage Goes Global + Vehicle Weight Reduction Reaches New Peaks] China’s magnesium alloy sector achieved two major breakthroughs, demonstrating the strong capabilities of indigenous innovation. On the one hand, a large-scale magnesium-based solid-state hydrogen storage device equipped with proprietary technology was successfully loaded at Shanghai Waigaoqiao Port and shipped to Malaysia, addressing longstanding pain points in traditional hydrogen storage and transportation and filling a gap in international maritime transport technology. On the other hand, the semi-solid injection-molded magnesium alloy seat frame assembly of FAW Hongqi was successfully installed, marking a key upgrade in vehicle lightweighting, with significant weight reduction achieved for each assembly. Spanning the two core fields of hydrogen storage and transportation and vehicle lightweighting, these achievements accelerated the scaled-up application of the magnesium alloy industry.

[SMM Magnesium Weekly Review: Magnesium Market Continued to Consolidate at High Levels, with Cost Support and Demand Stalemate Persisting] This week, the overall magnesium industry chain continued to consolidate at high levels, with prices of all categories remaining largely stable. The raw material dolomite market operated steadily, with differentiated supply across regions but overall stability, while the procurement pace on the demand side remained steady. The magnesium ingot market remained in a supply and demand stalemate, as producers showed strong reluctance to sell, and low circulating inventory supported firm quotations. However, both domestic trade and foreign trade demand appeared weak, transactions were sluggish, and FOB quotations stayed at high levels, though actual deals were limited. The magnesium powder market remained stable with a firm tone, domestic trade demand continued to recover steadily, foreign trade growth was limited, and cost support remained in place. The magnesium alloy market's benchmark price held steady, processing fees remained firm, enterprise operating rates rebounded, and downstream demand gradually recovered, though the pace of growth slowed, with overall transactions remaining mild. Looking ahead, the tug-of-war between cost support and weak demand is expected to continue, and the market may continue to consolidate at high levels.

The University of Tsukuba in Japan successfully developed a new-type magnesium-air solid-state battery, using a nitrogen-doped porous graphene cathode to solve the problem of chloride corrosion, providing a high-safety, low-cost technological pathway for flexible electronics and wearable devices. At the same time, the Record Ridge magnesium mine project in British Columbia, Canada, has triggered strong opposition from the local tourism community over plans to transport ore to China for processing, and has been halted by litigation, with a court hearing scheduled for March 10. The two developments respectively highlight magnesium’s cutting-edge applications in new energy technology and the real-world tensions in resource development.

[Sluggish in the Morning, Recovered in the Afternoon; Magnesium Prices Held Up Well] The magnesium market was generally stable with a slight rise. In the morning, supply side, magnesium producers showed strong sentiment to hold prices firm, with mainstream quotations concentrated at 16,700-16,800 yuan/mt; some small producers were willing to accept shipments at 16,600 yuan/mt, and market inquiries showed mediocre performance.

In 2026, China's magnesium exports face dual pressures: Middle East conflicts have spiked freight rates and blocked major trade routes, while tighter controls on dual-use items to Japan limit growth. Despite 420,000 tons exported in 2025, the industry must shift from low-price "involution" to rational quoting to sustain its global dominance.

[SMM Magnesium Weekly Review: Magnesium Market Held Up Well After Holiday, Raw Material Divergence Tightened Supply, Domestic and Foreign Trade Game Intensified] This week, the magnesium industry chain overall showed a pattern of holding up well, with prices of various varieties rising slightly. Raw material side, dolomite market was stable with some increases; top-tier enterprises in Wutai area continued to halt production, but other production areas promptly filled the gap, keeping overall supply stable. It is expected that as holiday ended and logistics costs pulled back, subsequent delivery-to-factory prices will see a slight decrease. Magnesium ingot market held up well, with offers in main production areas raised to 16,600 yuan/mt; supply side had strong reluctance to sell, combined with sufficient pre-holiday presales, leading to tight spot circulation. Domestic trade restocking for rigid demand supported transactions, while foreign trade inquiries were active but actual orders were cautious, with FOB offers rising to $2,400-2,450/mt. Magnesium powder market operated steadily, supported by raw materials, prices rose slightly, mainly executing previous orders; foreign trade expects new orders to be placed gradually, while domestic trade procurement mostly plans to start in March. Magnesium alloy market benchmark price held up well, processing fee remained stable and firm, enterprises mainly focused on scheduled production, and the tight supply-demand balance pattern continued. Overall, post-holiday magnesium market is in an adjustment phase, structural contraction on the supply side supports prices, the game between domestic and foreign trade intensifies, and subsequent attention should be paid to the pace of European inventory digestion and changes in ocean freight rates.

[SMM Survey: North American Magnesium Industry Accelerates Layout, Chinese Export Prices Rise, Global Magnesium Market Awaits Post-Holiday Volume Release] Recently, the global magnesium industry has shown a pattern of accelerated regional layout alongside trade competition. In North America, Western Magnesium relocated to a new plant in Las Vegas, accelerating the construction of its clean magnesium demonstration production line; it plans to commission its continuous vacuum reduction process within six months, aiming to verify scalability feasibility and promote low-carbon magnesium production. Innomin Minerals is advancing a large magnesium ore project in British Columbia, Canada, with drilling confirming near-surface wide mineralization, magnesium grade consistently above 20%, leaching recovery rate close to 99%, and associated nickel, cobalt, and platinum group metals further highlighting the resource value. On the export market, post-Chinese New Year, China's magnesium ingot FOB offers broke through $2,400-2,450/mt, showing a significant increase compared to pre-holiday levels. Orders accumulated during the holiday are mainly for March shipment, with concentrated post-holiday shipments by traders boosting short-term activity; however, overseas buyers, affected by high ocean freight rates and high prices, are placing orders cautiously, with a strong wait-and-see sentiment. Industry insiders expect a potential peak in new overseas orders from late February to early March, with subsequent trends needing to monitor the pace of European inventory digestion and changes in ocean freight rates.

[SMM Magnesium Morning Meeting Summary: Magnesium Ingot Trading Sluggish and Stagnant, Magnesium Product Prices Generally Stable] Magnesium ingot quotations remain stable, trading is sluggish, inventory is divergent, downstream rigid demand is insufficient, and the market is in a stalemate. Magnesium alloy prices are stable, with tight supply-demand balance supporting firm processing fees; magnesium powder prices are slightly raised due to raw material support, but order follow-up is limited, and domestic trade procurement is mostly postponed to March.

[SMM Magnesium Morning Conference Summary: Domestic Magnesium Market Remained Stable Before Chinese New Year, Primary Magnesium and Magnesium Alloy Prices Stabilized in the Short Term] Yesterday, domestic primary magnesium market quotations remained stable. As the Chinese New Year approached, smelters showed a weak willingness to sell. Pre-holiday stockpiling for domestic trade was largely completed downstream, and spot transactions were sluggish, with most deals being futures orders. In foreign trade, forward tender orders for delivery by the end of March had already been initiated in the first half of the month. It is expected that primary magnesium prices will remain stable within the range of 16,400 yuan/mt before the Chinese New Year. Magnesium alloy market prices were also steady, with mainstream tax-inclusive ex-factory prices at 18,600-18,800 yuan/mt and FOB prices at $2,600-2,650/mt. Enterprises had completed raw material stockpiling and maintained normal production, while downstream die-casting and end-users were gradually entering holidays. Market supply and demand maintained a tight balance, and short-term price stability is expected to continue.

[SMM Magnesium Weekly Review: Magnesium Market Remained Stable Pre-Holiday, Prices Steady in Major Production Areas, Overseas Inquiries Increased but Trading Remained Sluggish] This week, the domestic magnesium industry chain market operated steadily overall. As the Chinese New Year holiday approached, market trading activity gradually slowed, with participants generally adopting a wait-and-see attitude. The dolomite market remained stable overall; the suspension of production by top-tier enterprises in the Wutai region led to tight supply of high-quality resources, but other major production areas promptly compensated for the gap, ensuring stable supply. Steady operations at primary magnesium enterprises in Shaanxi, Shanxi, and Inner Mongolia generated rigid demand, coupled with rising pre-holiday freight costs pushing up expenses, supporting relatively strong prices. The magnesium ingot market held steady, as smelters in major production areas saw eased funding pressure and maintained firm offers, while downstream pre-holiday stockpiling concluded, resulting in sluggish spot trades. In the Tianjin Port FOB market, overseas new orders were scarce, mostly for forward delivery, with the Chinese New Year holiday impacting the progress of actual transactions. Magnesium powder enterprises slowed their production pace after completing raw material stockpiling, as both domestic and international procurement neared completion, leading to a cooling trading atmosphere. Magnesium alloy enterprises operated normally, but downstream die-casting and end-user companies gradually began holiday breaks, resulting in subdued orders. The tight supply-demand balance supported firm processing fees.