SMM Weekly Review: Magnesium Prices Extend Declines amid Falling Raw Material Prices

Published: Nov 25, 2022 17:06

Source: SMM

Save

SHANGHAI, Nov 25 (SMM) - The magnesium market still performed poorly this week, and the market quotations showed a downward trend.

SHANGHAI, Nov 25 (SMM) - The magnesium market still performed poorly this week, and the market quotations showed a downward trend. As of this Friday, the price of Mg90% magnesium ingots in Fugu county, Shaanxi province, dropped 500 yuan/mt from the beginning of the week. Under the influence of the continuous decline in raw material prices, magnesium prices also fell rapidly amid strong bearish sentiment.

The price of coal and ferrosilicon continued to drop this week. High inventory dented the bargaining power of magnesium plants. Market players are generally pessimistic over the magnesium market in December. Given the high inventory, magnesium prices will barely find support, even if producers cut production.

Magnesium prices will remain in a downward track, if raw material prices continue to fall next week.

Market 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 for 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

1 hour ago

Lump Coal Auction Prices Drop by 254.11 Yuan/Ton at Hongliulin Mine

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.

1 hour ago

Australian LMG Appoints New CEO, Aims to Diversify Global Magnesium Supply Chain

【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.

1 hour ago

Wuchan Zhongda Invests 1 Billion in Anhui Magnesium Project, Targets Automotive Lightweight Solutions

【SMM Magnesium Flash】 On September 9th, Wuchan Zhongda disclosed at the 2026 semi-annual performance briefing that its Anhui Magnesium Industry's project, with an annual output of 5 million magnesium-aluminum alloy die-casting structural parts, has a total investment of 1 billion yuan. Located in Wuhu, Anhui, the project possesses full-process automotive-grade production capabilities from melting to testing. The project has purchased 12 sets of large-scale die-casting units, directly meeting the expansion needs of customers such as SAIC Motor, Sige New Energy, and United Power. It has also conducted joint development with customers on "replacing aluminum with magnesium", and multiple projects have entered the sample testing phase. As production capacity is gradually released, Wuchan Zhongda's magnesium alloy die-casting business is expected to accelerate its expansion, facilitating its transformation into a provider of lightweight comprehensive solutions.

1 hour ago