Magnesium Ingot Inventory Down 3.2% MoM, Prices Rise Amid Weak Demand and Trader Stock Clearing

[SMM Magnesium Weekly Review: Coal Price Fluctuations Drive Magnesium Price Consolidation, Weak End-Use Demand Caps Upside] This week, dolomite supply structure diverged, with high-quality local ore sources in Wutai remaining tight. Enterprises purchased from other provinces to supplement supply, keeping overall ore supply sufficient and prices stable. Driven by wild swings in coal prices, magnesium ingot prices in main production areas rose first and then fell. At the start of the week, raw material cost push shot up magnesium prices, but downstream clients balked at high prices and reduced purchases. Coupled with the subsequent coal price pullback, magnesium ingot prices gave back all gains. Export FOB quotes edged down in tandem with domestic prices, export orders fell short of expectations, September-October peak season demand failed to materialize, and traders held a strong wait-and-see sentiment. Downstream magnesium powder and magnesium alloy were also under pressure. Magnesium powder followed magnesium ingot fluctuations, processing fees were under pressure, and downstream buyers only maintained rigid demand. Magnesium alloy saw weak supply but even weaker demand, with die-casting plant operating rates declining, inventory rising, and processing fees weakening. Overall, this week's magnesium industry chain was primarily disrupted by coal cost fluctuations, end-use demand showed no substantive recovery, and the entire industry lacked strong support, maintaining a fluctuating trend on a subdued note in the short term.

[SMM Magnesium Survey: Europe and the US Accelerate Local Magnesium Resource Projects to Advance Critical Minerals Supply Chain Independence] Romania's MPI and the US's Magrathea are successively advancing integrated magnesium projects. A €400 million magnesium ore project in Europe has obtained a mining permit, and a US enterprise has secured over $100 million in funding to develop magnesium extraction from brine, with both regions aiming to reduce reliance on magnesium imports and ensure raw material supply for high-end manufacturing and military industries.

【SMM Blue Coal Express】 Ordos Electric Power & Metallurgy Group Procurement Center announced that, based on current market conditions, the ex-factory tax-inclusive price of medium-sized blue coal in the Shenmu area will be adjusted from 1300 yuan/ton to 1030 yuan/ton, and that of small-sized blue coal will be adjusted from 1280 yuan/ton to 1010 yuan/ton, representing a reduction of 270 yuan/ton for both grades. The new prices will be implemented for all deliveries entering the plant starting from September 10,2026.