Magnesium Prices Remained Stable Thanks to Support from Rising Raw Material Prices

Published: Oct 8, 2022 09:19

Source: SMM

Save

A salesperson of a large magnesium plant revealed that magnesium ingot has been enjoying rather robust cost support from the rising prices of coal, ferrosilicon and dolomite, with mainstream transaction prices at 24,500-24,700 yuan/mt.

SHANGHAI, Oct 8 (SMM) - It is reported by leading producers that during the National Day holiday, the magnesium prices were stable and the factories made shipments in an orderly manner, while the market transaction was in a deadlock. A salesperson of a large magnesium plant revealed that magnesium ingot has been enjoying rather robust cost support from the rising prices of coal, ferrosilicon and dolomite, with mainstream transaction prices at 24,500-24,700 yuan/mt. Therefore, magnesium plants were reluctant to compromise on the prices. Regarding the following trend of magnesium prices, a senior trader said that the magnesium prices could hardly fall again in the short term with the strong cost support. Market participants were suggested to wait and see the downstream demand. According to SMM analysis, the rising operating rate of steel mills before the holiday and the increase in their restocking demand have led to the improving transactions of ferrosilicon. The October bid price of some steel mills rests around 8,400 yuan/mt, up 300-500 yuan/mt from September. At the same time, the arrival of the heating season has reinforced the market expectations for rising coal prices. In this case, it is expected that the cost support for magnesium ingot prices from raw material will gradually strengthen. SMM will keep a close eye on the changes in the magnesium prices after the holiday.

Market

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Apr 2, 2026 15:08

Latrobe Magnesium Secures Funding for Commercial Plant via U.S. Distributor Prepayment

[SMM Magnesium Express] Latrobe Magnesium secured a non-dilutive prepayment from U.S. distributor Metal Exchange to advance commissioning of its commercial magnesium plant. The Latrobe Valley facility uses brown coal fly ash as feedstock to produce magnesium ingots and cementitious by-products. The funding signals growing commercial backing for ash-to-magnesium processing, offering an offtake-backed prepayment model for similar projects.

Apr 2, 2026 15:08

Mar 31, 2026 19:33

[SMM Analysis] Manganese-based Battery Materials Market Analysis：Cost-driven Divergence with Demand Recovery Ahead

Recently, China's manganese-based battery materials market has been characterized by cost-driven divergence and gradual demand recovery. Battery-grade manganese sulfate and trimanganese tetroxide have strengthened on the back of rising raw material and freight costs; electrolytic manganese dioxide remains stable; and lithium manganate is steady amid volatile lithium carbonate prices, awaiting a demand rebound in April.

Mar 31, 2026 19:33

Mar 26, 2026 15:38

Magnesium Market Holds Up Well as Cost Support and the Tug-of-War Between Sellers and Buyers Continues [SMM Magnesium Weekly Review]

[SMM Magnesium Weekly Review: Magnesium Market Held Up Well, With Cost Support and a Tug-of-War Between Sellers and Buyers Continuing] This week, the overall magnesium industry chain held up well, with prices of all products generally raised. The raw material dolomite market remained stable, with ample supply and steady demand. Magnesium ingot prices consolidated at highs. At the beginning of the week, supported by rising energy costs such as ferrosilicon and coke and tight spot availability, prices jumped by 300 yuan/mt. Subsequently, downstream fear of high prices emerged, transactions failed to keep pace, and prices consolidated at highs. In foreign trade, the center of magnesium ingot FOB quotes moved up to $2,440-2,470/mt. Wait-and-see sentiment outside China remained strong, but influenced by bullish expectations in China, forward orders were gradually locked in. Magnesium powder prices remained firm, with strong cost support. Export data increased YoY, while domestic trade was mainly driven by just-in-time procurement. The benchmark price of magnesium alloy held up well, but the release of new capacity led to increased supply, processing fees stayed in the doldrums, and the market showed a pattern of strong supply and weak demand. Overall, cost support remained the core driver behind magnesium prices fluctuating at highs, while downstream acceptance of high prices was limited, and the market may continue this tug-of-war in the short term.

Mar 26, 2026 15:38