The tug-of-war between sellers and buyers in the magnesium market continues, with firm raw material prices supporting the rise in magnesium ingot prices [SMM Magnesium Morning Meeting Summary]

Published: Jun 20, 2025 09:44

Save

[SMM Magnesium Morning Meeting Summary: The tug-of-war between supply and demand in the magnesium market continues, with firm raw material prices supporting the rise in magnesium ingot prices] Magnesium ingot prices continue to rise, with transaction prices in the Fugu region ranging from 16,200 to 16,300 yuan/mt. The raw material sector remains firm, with stable dolomite prices in Wutai and an upward shift in the price center of ferrosilicon. The current market is characterized by "low inventory and weak demand," with domestic trade purchases supporting prices, while foreign trade is exerting significant downward pressure on prices. Trading in the magnesium alloy and magnesium powder markets has slowed, with downstream players adopting a wait-and-see attitude. Amid expectations of production resumptions, prices may maintain a fluctuating trend in the short term.

SMM Magnesium Morning Meeting Summary on June 20:

Magnesium Raw Materials

Prices

The ex-factory price (excluding tax) of 1-3 grade dolomite (Wutai) is 78 yuan/mt, and the ex-factory price (excluding tax) of 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price of 75 ferrosilicon in the Shaanxi region ranges from 5,600 to 5,700 yuan/mt.

Supply and Demand

Recently, some dolomite mines in the Wutai area of Shanxi have remained in a state of suspension, while the ore prices of the remaining dolomite mines in the region have not shown significant fluctuations. Overall, the price of dolomite in the Wutai area has maintained a stable trend. Yesterday, the futures market for ferrosilicon fluctuated upward, and ferrosilicon producers had a strong expectation for price increases, leading to a reduction in low-priced supplies and an upward shift in the price center of 72# ferrosilicon.

Magnesium Ingots

Prices

Today, the transaction price of magnesium ingots in the Fugu area ranges from 16,200 to 16,300 yuan/mt, an increase of 250 yuan from yesterday. The FOB price in China remains unchanged at $2,210-2,300/mt.

Supply and Demand

Yesterday, magnesium ingot producers had a strong sentiment for price increases, with quotes reaching as high as 16,300 yuan/mt. Currently, the magnesium market is characterized by "low inventory and weak demand." The continuous release of procurement demand from traders has driven prices upward, and the low inventory status of producers supports their reluctance to budge on prices. Although overseas buyers are actively inquiring, actual transactions remain cautious, with significant price pressure. Under the expectation of production resumptions, prices may maintain a fluctuating trend in the short term, but insufficient follow-up from the demand side may limit the increase. Subsequent trends still require observation.

Magnesium Alloys

Prices

The mainstream tax-included ex-factory price of magnesium alloys in China ranges from 17,800 to 18,000 yuan/mt, and the mainstream FOB price of magnesium alloys in China is $2,480-2,510/mt.

Supply and Demand

The price of magnesium ingots, a raw material, fluctuates frequently. Additionally, with die-casting plants and 3C customers having completed their stockpiling in the early stage, the current magnesium alloy market is mainly characterized by wait-and-see attitudes, with cautious procurement behavior and mediocre overall market transaction performance.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranges from 17,500 to 17,700 yuan/mt, and the FOB price in China is $2,380-2,450/mt.

Supply and Demand

Trading in the magnesium powder market has slowed down, and traders' procurement sentiment has shifted from active to wait-and-see as prices have risen. Currently, magnesium powder production remains stable, with prices fluctuating according to market conditions.

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

14 hours ago

Magnesium Market Breaks Downtrend as Coal Prices Surge, Producers Face Rising Costs

As August began, the magnesium market appeared trapped in a prolonged stalemate.The production-cut tailwinds from July faded, and primary magnesium supply steadily recovered. Meanwhile, overlapping with the overseas summer lull and the domestic die-casting off-season, downstream orders were scarce and purchasing sentiment hit rock bottom.

14 hours ago

15 hours ago

Coal Surge Ignites Magnesium Market, Two-Month Consolidation Finally Breaks, Production Cuts and Destocking Signal Next Rally [SMM Analysis]

[SMM Magnesium Market Analysis: Coal Price Surge Ignites Magnesium Market, Two-Month Consolidation Finally Breaks Out, Production Cuts and Destocking Set Stage for Next Rally] Entering August, the magnesium market seemed to have fallen into a prolonged stalemate. The dividend from July production cuts faded, primary magnesium supply steadily recovered, while summer breaks outside China combined with the domestic die-casting off-season left downstream orders sparse and purchasing sentiment at a freezing point. With both supply and demand weak, magnesium prices were locked firmly in a narrow range of 15,800-15,950 yuan/mt, with little room to move either way. In mid-to-late August, prices even dipped to 15,750 yuan/mt at one point, with the market broadly taking a wait-and-see stance. When this bottom-level consolidation, already lasting two months, would see a turning point remained unknown.

15 hours ago

18 hours ago

Cost-Driven Magnesium Prices Shot Up, Weak Demand Makes Rally Unsustainable [SMM Magnesium Weekly Review]

[SMM Magnesium Weekly Review: Cost Push Drives Magnesium Prices Up, Weak Demand Limits Gains] This week, mainstream quotations for 99.90% magnesium ingot in major production areas stood at 16,050-16,150 yuan/mt, up 300 yuan/mt WoW, with FOB prices at $2,280-2,380/mt and an average of $2,330/mt. Magnesium ingot prices shot up during the week, driven by rising coal and ferrosilicon costs, coupled with some restocking at higher prices in foreign trade. However, the overall market remained characterized by strong supply and weak demand, with sluggish transactions at high prices and signs of a pullback emerging in the latter part of the week. Overseas demand has not shown any substantial recovery, with market activity dominated by tentative inquiries, limited actual order volumes, and evident buyer pressure for lower prices, keeping trading sluggish. Downstream magnesium powder and magnesium alloy prices followed the cost-driven increase in magnesium ingot, but end-use demand for magnesium powder remained weak, with some enterprises cutting production or suspending operations, exports constrained, and inventory levels rising. Spot inventory of magnesium alloy was ample, competition among peers was intense, and die-casting enterprises faced insufficient orders and declining operating rates, keeping processing fees under pressure. In the short term, cost support and weak demand are locked in a tug-of-war, and the upward momentum in magnesium prices is losing steam, with the market likely to return to consolidation. Going forward, close attention should be paid to the release of domestic and overseas orders.

18 hours ago