Cost Support Unable to Offset Weak Demand; Magnesium Ingot Market Turns Weak Under Pressure [SMM Magnesium Ingot Spot Report]

Published: Sep 3, 2026 17:09

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[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, September 3:

Today, mainstream quotations for national standard 99.90% magnesium ingot in Fugu stood at 16,000-16,100 yuan/mt, and mainstream quotations for national standard 99.80% magnesium ingot in Fugu stood at 16,000-16,100 yuan/mt. China FOB prices were reported at $2,280-2,380/mt.

The magnesium ingot market remained in the doldrums today, shifting from earlier producer price-holding to a weaker tone under pressure, with domestic transaction center gravitating toward 16,000 yuan/mt. Previously supported by rising costs, smelters showed strong willingness to hold prices firm, but high-priced resources continued to lack transaction support. Downstream purchases remained cautious and wait-and-see, and with traders showing willingness to sell, high prices in the market were hard to sustain, and the price center moved lower. Foreign trade continued to follow domestic EXW prices passively, with mainstream FOB quotations maintained at $2,280-2,380/mt, basically flat from yesterday, and room for negotiation still existed for actual orders. The rise in foreign trade quotations this round came entirely from domestic cost transmission, not from a real recovery in overseas demand. Overseas clients showed low acceptance of high quotations, order releases were limited, and foreign trade transactions were overall mediocre. Currently, the cost side still provides bottom support for prices, but both domestic and overseas demand follow-through is insufficient. The tug-of-war between longs and shorts in the market is intensifying, leaving limited upside room for further price rises while pullback risks exist. Overall, the magnesium ingot market is expected to consolidate on a subdued note in the short term, and the sustainability of the market still needs further confirmation from transactions.

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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