Demand for Magnesium Ingot Remains Sluggish, Leading to Price Decline; Short-Term Weakness Unlikely to Cause Significant Drop [SMM Magnesium Morning Meeting Minutes]

Published: Feb 3, 2026 09:20

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[SMM Magnesium Morning Meeting Minutes: Weak Magnesium Ingot Demand Leads to Price Decline, Short-Term Weakness Unlikely to Deepen] Fugu magnesium ingot prices were lowered by 200 yuan/mt, with weak demand driving the decline; short-term weakness is expected, but downside room is limited.

SMM January 30 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 5,850 yuan/mt.

Supply and Demand

Wutai dolomite prices held steady yesterday. Recently, leading dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the strong demand support from the high operating rates of primary magnesium plants, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, FS2603, closed at 5,624 yuan, down 58 yuan. The futures market held up well yesterday. In the spot market, ferrosilicon supply remained stable, with enterprises maintaining normal production schedules. Downstream users continued just-in-time procurement, and traders operated cautiously. Market trading activity remained at a neutral level. Future price trends will depend on the next round of steel mill pricing.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingot in the Fugu area was 16,400-16,500 yuan/mt, down 200 yuan/mt from the previous working day; the China FOB price was $2,350-2,400/mt.

Supply and Demand

The magnesium market was in the doldrums yesterday. In the morning, although primary magnesium smelters maintained firm offers, downstream customer purchase willingness was weak, forcing producers to lower prices to stimulate transactions. Consequently, the price center edged down slightly. Trading volume was sluggish; according to incomplete SMM statistics, spot transaction volume today was only 500-600 mt. Overall market performance indicated that some smelters had shifted to market-following sales strategies, while downstream stockpiling activities for the pre-holiday period were winding down. Against this backdrop, magnesium prices are expected to remain in the doldrums in the short term. However, supported by cost factors, further downside room is limited.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,800-19,000 yuan/mt; the China FOB price for magnesium alloy was $2,630-2,690/mt.

Supply and Demand

The magnesium alloy market saw the benchmark price under pressure while processing fees held steady yesterday. Cost side, the transaction price center for magnesium ingot moved down, leading to a lower benchmark price. Auxiliary material side, the price of A00 aluminum ingot fell from high levels, narrowing magnesium alloy processing costs. However, magnesium alloy producers mainly adopted a wait-and-see stance, keeping processing fees stable. Supply-demand side, magnesium alloy plants operated stably. As the year-end approaches, some die-casting plants and end-users are nearing the Chinese New Year break, leading to a slight reduction in orders. Overall, the magnesium alloy market is expected to maintain a tight balance, with alloy processing fees holding up well.

Magnesium Powder

Price

Today, the mainstream ex-factory prices, including tax, for 20-80 mesh magnesium powder in China were 17,750-17,950 yuan/mt; the FOB price in China was $2,510-2,560/mt.

Supply and Demand

The magnesium powder market overall remained stable yesterday, but affected by declining raw material prices, the market price center shifted downward. Demand-side performance was mediocre, with the domestic trade market continuing a purchasing-as-needed procurement pace, and the number of newly signed foreign trade orders was also relatively limited.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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