Currently, coal gas prices exhibited a fluctuating trend with wild swings, mainly affected by the coal supply-demand pattern, seasonal regulation, and energy policy adjustments, with price fluctuations far exceeding those of previous years. The underlying reason was that the semi coke industry could not absorb the rising coal costs on its own, resulting in severely imbalanced cost transmission. When coal prices rose, semi coke could only pass through a small portion of costs, with the vast majority amortized by primary magnesium smelters, and this trend continued to intensify.
Recently, ferrosilicon market prices showed a relatively mild trend. Since 2026, mainstream prices of 75 ferrosilicon remained stable in the range of 5,700–6,100 yuan/mt, and the impact of ferrosilicon on magnesium costs weakened significantly. Overall, energy costs have replaced auxiliary materials as the core factor driving magnesium price trends.
Sustained losses in semi coke led to significantly higher coal gas costs that primary magnesium smelters needed to amortize. This transmission chain notably weakened the cost advantages of primary magnesium enterprises deeply tied to the semi coke industry.
According to SMM's latest cost calculation data from April 2026, the regional cost landscape of primary magnesium smelting in China underwent a major reshaping. Smelting costs for primary magnesium in Shaanxi, which traditionally enjoyed energy industry chain advantages, continued to rise, while costs in Shanxi remained relatively stable. The price spread between the two regions narrowed significantly, and the differentiated regional cost advantages faded on a phased basis.
Overall, coal and coal gas costs have become the core factors driving primary magnesium prices, enterprise profitability, and industry dynamics, and the trend of increasing cost pressure on primary magnesium smelters continues.
