Rising Fuel Costs and Shipping Congestion Drive Up International Magnesium Freight Rates

Since the start of June, the tug-of-war between sellers and buyers over magnesium prices has been intensifying. The EXW price of 99.90% magnesium ingot (Fugu, Shenmu) moved sideways around 16,300–16,400 yuan/mt, with the trading range narrowing significantly. The magnesium market was mired in a supply-demand stalemate, as end-users' acceptance of high magnesium prices declined markedly, while primary magnesium smelters held their bottom line supported by costs.

[SMM Magnesium Express]On June 17, according to industry media reports, Xinyuan Manufacturing explicitly stated in its 2026 annual board report that it will accelerate the commissioning of large-tonnage die-casting and semi-solid injection molding production lines, focusing on core magnesium alloy components such as CCB brackets for new energy vehicles, rear shells for central control screens, and seat skeletons. It will also expand the application of magnesium alloy structural components in emerging fields like intelligent robots, computing cabinets, smart lawn mowing robots, and general-purpose power units. As application scenarios continue to broaden, the market potential for magnesium alloy lightweight components is expected to further expand.

[SMM Magnesium Express]According to Xinhua News Agency, the Ministry of Natural Resources released the "National Seawater Utilization Report 2025," indicating that China's utilization of marine resources is upgrading from "extracting water from the sea" to "extracting minerals from the sea." The report noted that Tianjin has initiated an international cooperation project titled "Key Technologies for Magnesium Extraction from Seawater/Concentrated Brine," forming a multidimensional industrial landscape for efficient resource development. Currently, there are 167 seawater desalination projects nationwide, with an annual capacity of 3.077 million tons. During the 14th Five-Year Plan period, efforts will continue to strengthen the technological reserves for strategic element extraction from seawater, contributing a "Chinese solution" to addressing global freshwater and strategic resource shortages. The industrialization process for seawater magnesium extraction is expected to accelerate.