Prices consolidate sideways, market awaits directional breakthrough [SMM Magnesium Morning Meeting Summary]

Published: Jun 30, 2025 09:24

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[SMM Magnesium Morning Meeting Summary: Prices Consolidate Sideways, Market Awaits Breakthrough Direction] SMM reported on June 30 that magnesium product prices remained stable overall at month-end: Fugu magnesium ingot at 16,200 yuan/mt, magnesium alloy at 17,700-17,900 yuan/mt, and magnesium powder at 17,450-17,650 yuan/mt. Raw material prices included dolomite at 78-128 yuan/mt and ferrosilicon at 5,600-5,700 yuan/mt. The market continued to exhibit a weak balance between supply and demand, with magnesium prices fluctuating rangebound within 16,000-16,300 yuan/mt for three consecutive weeks. Producers' refusal to budge on prices and expectations of production resumptions have created a tug-of-war. The release of new magnesium alloy capacity has intensified competition in processing fees, while magnesium powder maintains a cost-supported trend. In the short term, in the absence of new driving factors, the market may continue to fluctuate rangebound. It is recommended to pay attention to the actual progress of production resumptions in July and the recovery of overseas orders.

SMM Magnesium Morning Meeting Minutes on June 30:

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 Shaanxi is 5,600-5,700 yuan/mt.

Supply and Demand

Recently, with the confirmation of the news that downstream magnesium plants have gradually resumed production, the demand for dolomite in the market is expected to see significant growth. Considering the sufficient capacity in Shanxi Wenxi, Hubei, Inner Mongolia, and other regions, it is expected that the price of dolomite will remain stable in the subsequent period. Last Friday, the most-traded ferrosilicon futures contract 2509 closed at 5,370, and the price increased by 70 yuan MoM, with a MoM increase of 1.32%. In the spot market, driven by the futures market, the market sentiment for ferrosilicon has improved, and prices have risen slightly.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingot in Fugu area is 16,200 yuan/mt, unchanged from the previous working day. The China FOB price remains unchanged at 2,220-2,300 US dollars/mt.

Supply and Demand

Currently, the fluctuation range of magnesium prices continues to narrow, maintaining sideways movement within the 16,000-16,300 yuan/mt range for three consecutive weeks, showing obvious characteristics of horizontal consolidation. Production on the supply side remains stable, but the expectation of production resumptions in July poses potential pressure. On the demand side, domestic trade is stable, while foreign trade orders have stalled, and traders mostly purchase as needed. The market lacks support from new demand, maintaining an overall weak operation trend.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price of magnesium alloy in China is 17,700-17,900 yuan/mt, and the mainstream FOB price of magnesium alloy in China is 2,480-2,510 US dollars/mt.

Supply and Demand

Recently, leading enterprises in the magnesium alloy industry have gradually released new capacity, and magnesium alloy production has shown an upward trend. The cut-throat competition in magnesium alloy processing fees has intensified, and magnesium alloy processing fees have shown a bottom consolidation trend. Considering the relatively sluggish trading atmosphere in the current magnesium alloy market and the narrow range-bound movement of raw material magnesium ingot prices, it is expected that magnesium alloy prices will also show a narrow range-bound movement trend in the subsequent period.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China is 17,450-17,650 yuan/mt, and the China FOB price is 2,380-2,450 US dollars/mt.

Supply and Demand

Magnesium powder prices remain stable, with continued support from raw material costs. Domestic demand is mainly for just-in-time procurement, while overseas inquiries are sluggish, and the market has a strong wait-and-see atmosphere.

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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