SMM, April 16:
The FOB Tianjin port price of 99.90% magnesium ingot was quoted at $2,500-2,600/mt today, with an average price of $2,550/mt, up $50/mt from the previous day. Mainstream quotations for 99.90% magnesium ingot in the main producing areas were 17,050-17,150 yuan/mt, with an average price of 17,100 yuan/mt, unchanged from the previous day. China's magnesium market overall fluctuated downward this week.
Notably, the export market and domestic trade market diverged significantly today. According to SMM analysis, the main reason was that customs authorities had been continuously intensifying oversight on non-compliant exports and dual-use items in recent times, and the magnesium ingot export market had long been a concentrated area for violations such as forging or purchasing customs clearance documents from other import and export firms. The tightening of policy signals this time triggered a certain degree of panic sentiment in the export market, pushing quotations toward higher levels.
The main basis came from the following two customs policy regulations:
"Effective from December 2024: Three Magnesium-Containing Items Included in China's Dual-Use Items Export Control List": According to the "Export Control List of Dual-Use Items of the People's Republic of China" issued by the Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administration of Customs, and the State Cryptography Administration on November 15, 2024, and effective from December 1, 2024, three magnesium-containing items were included in export controls: first, magnesium metal powder used as a solid propellant component with a particle size of less than 500μm and magnesium content ≥97%; second, specific high-purity magnesium with metallic impurities (excluding calcium) below 0.02% and boron below 0.001%; and third, magnesium metal-based composite materials (as a subcategory of structural composite materials).
"Effective from October 2025: Proxy Export Business Must Disclose Actual Cargo Owners, Strengthening Corporate Income Tax Oversight": This policy revised the corporate income tax monthly (quarterly) prepayment tax return (Type A) and strengthened corporate income tax oversight on export enterprises, requiring proxy export business to disclose actual cargo owner information. This new regulation aimed to standardize export practices in industries including magnesium, curb violations such as forging or purchasing customs clearance documents from other import and export firms, and drive trade back to its authentic nature.
According to an SMM survey, since 2026, China customs authorities have continuously intensified crackdowns on non-compliant export operations of magnesium products. Meanwhile, oversight on magnesium-containing substances potentially involving dual-use items exports, as referenced in the relevant 2024 policies, has also become increasingly stringent. Recently, all export vessels carrying magnesium-containing substances have been required to provide quality inspection reports to prove that the goods do not fall within the scope of dual-use items listed in the policy documents before clearance can be granted. This measure has sent a clear tightening signal to the magnesium export market, and regulatory intensity is expected to further strengthen in the future.
Regarding the domestic magnesium ingot market, the recent weakening of ex-factory prices was mainly driven by high inventory levels at producers, with producers' sentiment to hold prices firm weakening. At the same time, the export market remained sluggish, and domestic trade demand was sustained only by rigid procurement. Although the cost side still provided some support, magnesium prices may continue to fluctuate downward in the short term.
If export policies continue to tighten, the export market may enter a new round of adjustment, potentially exerting further downward pressure on factory quotations. SMM also calls on the magnesium export market to build a healthy competitive environment, as only compliant operations can safeguard the long-term sound development of the industry.
