[SMM Magnesium Morning Meeting Summary: Magnesium Price Decline Temporarily Halted, Demand Recovery Still Under Observation] Yesterday, the magnesium market showed a divergent trend. Fugu magnesium ingot prices were quoted at 16,950-17,050 yuan/mt, with manufacturers' reluctance to budge on prices driving the range up to 17,000-17,200 yuan/mt, and daily transactions exceeded 1,000 mt. FOB prices remained at $2,340-2,400/mt, but overseas trade sentiment was dominated by a wait-and-see attitude. On the raw material side, dolomite prices held steady, while ferrosilicon remained firm due to support from magnesium plant production resumptions. Magnesium alloy followed the upward fluctuation of magnesium ingots, with processing fees staying firm. The magnesium powder market remained sluggish, with downstream buyers exercising caution. Although short-term reluctance to budge on prices is supporting the market, insufficient demand recovery coupled with slow overseas order releases suggests that prices may still face downward pressure in late September.

[SMM Spot Magnesium Ingot Market Update: Insufficient Demand Follow-Through, Prices Jumped Initially and Then Pulled Back Today] Magnesium producers in Fugu collectively refused to budge on prices, raising offers to 17,000-17,200 yuan/mt. However, due to weak downstream acceptance, prices dropped back slightly to 16,900-17,000 yuan/mt in the afternoon, with daily transactions exceeding 1,000 mt. On the export front, the market exhibited strong wait-and-see sentiment, as traders cautiously quoted for forward orders amid low trading activity. Overall, whether the short-term price resilience can hold will depend on demand follow-through. However, pressured by overseas quarterly orders, prices are expected to face downward pressure in late September.

[SMM Survey: Dynamics in the Magnesium Alloy Sector: Yizumi and DGS Tackle Technical Challenges, Latrobe Magnesium Advances Plant Construction] Recent overseas developments in the magnesium alloy industry: Yizumi signed a cooperation agreement with a subsidiary of Switzerland's DGS Group to jointly overcome technical challenges in magnesium alloy die-casting, supporting manufacturing in related fields. Australia's Latrobe Magnesium (ASX: LMG) commenced operations at its Hazelwood North demonstration plant, producing magnesium oxide, with commissioning to be completed by 2025. The company is also advancing its commercial plant with an annual capacity of 10,000 mt, scheduled for completion in 2027. The project incorporates scrap recycling to practice ESG principles. Both initiatives contribute to the magnesium alloy industry from perspectives of technological breakthroughs and resource circularity.

[SMM Magnesium Morning Meeting Summary: Magnesium Producers' Price Defense Line Loosens, Dual Supply and Demand Pressures May Lead to Short-term Price Doldrums] The magnesium market recently exhibited a pattern of strong supply and weak demand. Downstream buyers showed low purchasing enthusiasm due to the "rush to buy amid continuous price rise and hold back amid price downturn" sentiment. In the short term, magnesium prices are expected to remain in the doldrums. However, considering potential demand growth driven by pre-National Day purchases, a price rebound may occur.

[SMM Magnesium Morning Meeting Summary: Tug-of-War Between Sellers and Buyers Persists, Magnesium Prices Fluctuate in the Doldrums] Last week, the magnesium market continued to operate in the doldrums, with Fugu magnesium ingot offers at 16,950-17,050 yuan/mt and FOB prices at $2,340-2,400/mt, reflecting weak supply and demand. Domestic trade saw reduced end-user consumption due to the National Day parade, while foreign trade exhibited strong bargain-down purchasing sentiment with limited actual transactions. On the supply side, sampled magnesium plants reported weekly production of 18,076 mt (operating rate: 59.3%), up 3.8% MoM. Raw material dolomite prices remained stable, while ferrosilicon demand was sluggish with rangebound fluctuations. Magnesium alloy and powder prices followed magnesium ingots with minor adjustments, but decentralized downstream procurement and low inventory provided bottom support. The market is expected to maintain a weak and stable pattern in the short term, with the extent of September demand recovery becoming a key variable.

 As of press time, the high-low price spread in 2025 narrowed from 2400 yuan to4350 yuan, with magnesium price volatility shrinking 55% YoY, driven primarily by the strategic optimization of domestic demand structure. The structural upgrade of technical domestic demand replacing resource exports has facilitated stable magnesium price movements.

On the raw material side, dolomite prices show upward momentum influenced by reforms in the tender model, while demand-side magnesium smelting production rose 5.7% MoM to 85,000 mt, providing strong support. The ferrosilicon market remains supply-heavy with weak demand, balancing electricity price support against accumulating inventory. In energy costs, lump coal faces pressure from loose supply-demand dynamics, while semi-coke prices hold firm due to maintenance cycles. For hidden costs, normalized temperatures boosted smelting efficiency by 10%-15%, coupled with eliminated heat-prevention expenses and enhanced production stability, driving a notable pullback in overall costs.

[Weekly SMM Data: Production Rebounds, Inventory Diverges; Low Prices Prompt Purchases but Overall Pressure Remains] This week, the weekly production of a national sample of magnesium plants reached 17,416 mt, with an operating rate of 57%, up 3.3% MoM. The production site inventory increased by 6.5% MoM, mainly due to sluggish transactions in the first half of the week caused by bearish market sentiment. Although subsequent price protection policies stimulated some purchases, overall inventory still showed an accumulation trend. Social inventory slightly rose by 0.61%, but monthly inventory decreased by 4.98% MoM. Traders maintained stable inventory levels after completing deliveries and taking advantage of low prices for restocking, coupled with concentrated foreign trade deliveries in August, leading to a continued destocking trend in social inventory.

[MM Magnesium Weekly Review: This Week, the Magnesium Market Continues to Be in the Doldrums as Downstream Players Await Demand Recovery] This week, the magnesium market showed a pattern of weak supply and demand, with prices under pressure. On the raw material side, dolomite prices remained stable, with regional supplies showing some differentiation but overall stability; demand gradually recovered as magnesium plants resumed production. The main producing areas quoted magnesium ingot prices at 17,000-17,100 yuan/mt, down 250 yuan MoM, with increased supply and weak domestic demand, cautious foreign trade inquiries, and inventory pressure leading manufacturers to offer discounts for sales promotions. FOB quotes also declined, showing a divergence between spot and forward order prices. Both magnesium powder and magnesium alloy prices followed the weak trend of magnesium ingots. Short-term buying the dip in magnesium powder spurred some demand recovery, but domestic trade was still constrained by steel mill maintenance, while downstream buyers of magnesium alloys mostly adopted a wait-and-see approach and diversified their purchases to control costs. Overall, the current market is dominated by destocking and waiting, and it is expected that as foreign trade demand gradually recovers and cost support strengthens, magnesium prices will stop falling and stabilize, entering a phase of fluctuating rangebound.

[smm domestic analysis: magnesium hidden costs pull back to release benefits in september, raw material market sees price divergence amid tug-of-war between longs and shorts] the cost structure in september 2025 may feature stable raw material costs and a decline in hidden costs.