Magnesium Ingot Prices Rise Despite Weak Demand, Inventory Accumulates Amid Cost Support

[SMM Magnesium Weekly Review: Cost Push Drives Magnesium Prices Up, Weak Demand Limits Gains] This week, mainstream quotations for 99.90% magnesium ingot in major production areas stood at 16,050-16,150 yuan/mt, up 300 yuan/mt WoW, with FOB prices at $2,280-2,380/mt and an average of $2,330/mt. Magnesium ingot prices shot up during the week, driven by rising coal and ferrosilicon costs, coupled with some restocking at higher prices in foreign trade. However, the overall market remained characterized by strong supply and weak demand, with sluggish transactions at high prices and signs of a pullback emerging in the latter part of the week. Overseas demand has not shown any substantial recovery, with market activity dominated by tentative inquiries, limited actual order volumes, and evident buyer pressure for lower prices, keeping trading sluggish. Downstream magnesium powder and magnesium alloy prices followed the cost-driven increase in magnesium ingot, but end-use demand for magnesium powder remained weak, with some enterprises cutting production or suspending operations, exports constrained, and inventory levels rising. Spot inventory of magnesium alloy was ample, competition among peers was intense, and die-casting enterprises faced insufficient orders and declining operating rates, keeping processing fees under pressure. In the short term, cost support and weak demand are locked in a tug-of-war, and the upward momentum in magnesium prices is losing steam, with the market likely to return to consolidation. Going forward, close attention should be paid to the release of domestic and overseas orders.

[Cost support insufficient to offset weak demand; magnesium ingot market turns subdued under pressure] China's magnesium ingot transaction center moved toward 16,000 yuan/mt today, with FOB quotes holding steady at $2,280-2,380/mt. Affected by sluggish high-price deals and insufficient domestic and overseas demand follow-through, the market shifted from holding prices firm to subdued under pressure, and is likely to consolidate on a subdued note in the short term.

[SMM Magnesium Survey: Latrobe Magnesium's Demonstration Plant in Australia Surpasses 70% Construction Progress, First Magnesium Metal Output Expected in H2 2026] Latrobe Magnesium's magnesium demonstration plant in Australia has reached 70% construction progress, with core equipment essentially installed and the project entering the final commissioning stage. The plant produces magnesium products from lignite fly ash solid waste resources and has already achieved stable output of high-purity magnesium oxide, securing prepayments from US enterprises to lock in future product sales. The project plans to begin phased commissioning and still expects to produce its first magnesium metal in H2 2026, aligning with Australia's domestic critical minerals supply strategy. At this stage, only the demonstration project is progressing smoothly, while the large-scale commercial production line still requires financing and regulatory approvals, with no effective supply growth formed yet.