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

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[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.

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