Ordos Group Lowers Blue Coal Prices by 270 Yuan/Ton, Effective September 10, 2026

[Weakening cost expectations drive magnesium ingot prices sharply lower] The magnesium ingot market ended its brief shot up today, with prices drifting lower. Pullbacks in coal and ferrosilicon cooled expectations for cost support, and under high inventory and capital pressure, smelters rushed to offer low-priced spot magnesium. Downstream demand was already weak, and combined with wild swings in the market, confidence is lacking and wait-and-see sentiment is strong. Magnesium producers' pricing strategies will dominate the futures market going forward, and the market is expected to remain under pressure in the short term.

On September 9, the starting auction price of lump coal from Hongliulin Mine was 920 yuan/ton, with an auction volume of 104,000 tons. The transaction average price stood at 929.89 yuan/ton, down 254.11 yuan/ton from the average price of the previous period. Today, the lowest auction price was 921 yuan/ton, and the highest was 961 yuan/ton.

【SMM Magnesium Flash】 Recently, Latrobe Magnesium (LMG) of Australia announced that Robert Stein will officially assume the position of CEO on October 1st. He pointed out that there is a huge gap in independent primary magnesium supply outside China, with China accounting for about 90% of global production. Magnesium has been listed as a critical mineral by many countries. As one of the few advanced independent primary magnesium projects overseas, LMG adopts a patented hydrometallurgical process to extract high-purity magnesium oxide from brown coal ash and has secured an exclusive distribution agreement with a US distributor and support from Australian and US financial institutions. It will then comprehensively review its financial and commercialization paths, which is expected to accelerate project implementation and provide new options for diversifying the western magnesium supply chain.