Magnesium Prices Rise Amid Higher Costs, But Demand Weakness Limits Momentum

Published: Sep 4, 2026 18:12

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【SMM Weekly Magnesium Review】This week, the mainstream offer for 9990 magnesium ingots in major production regions stands at RMB 16,050-16,150/ton, up RMB 300/ton week-on-week, with FOB offers at USD 2,280-2,380/ton and an average price of USD 2,330/ton. Driven by rising costs of coal and ferrosilicon, magnesium ingot prices climbed during the week, coupled with some restocking purchases at higher prices in foreign trade; however, the overall market sees strong supply against weak demand, transactions at high prices lack momentum, and prices have already shown signs of decline in the later period. Meanwhile, there is no substantial recovery in overseas demand, with the market mostly seeing tentative inquiries, limited actual transaction volumes and obvious price suppression from buyers, keeping trading activity muted. Downstream magnesium powder and magnesium alloys passively follow the price hike of magnesium ingots; terminal demand for magnesium powder remains sluggish, with some enterprises cutting production or suspending operations, exports restricted, and inventories rising to some extent. Spot inventories of magnesium alloys are abundant, with fierce competition among peers, die-casting enterprises face insufficient orders leading to declining operating rates, and processing fees remain under continuous pressure. In the short term, the support from costs and weak demand are locked in a game, the upward momentum of magnesium prices lacks follow-up, and the market may return to range-bound movement; subsequent focus will be placed on the release of domestic and foreign orders.

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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