Support for refusing to budge on prices weakens, and prices may continue to be weak in the future [SMM Magnesium Morning Meeting Summary]

Published: Jul 3, 2025 09:27

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[SMM Magnesium Morning Meeting Summary: Support for refusing to budge on prices weakens, and prices may continue to be weak in the future] Negative feedback from the magnesium alloy and aluminum alloy sectors during the off-season for demand, coupled with a reduction in magnesium ingot procurement needs, and the completion of stockpiling for some foreign trade orders in advance due to the overseas summer break, results in relatively limited support on the demand side. Overall, the magnesium market exhibits a pattern of weak supply and demand, and magnesium prices are expected to continue fluctuating rangebound in the future.

SMM July 1 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

The ex-factory tax-exclusive prices of 1-3 grade dolomite (Wutai) were 78 yuan/mt, while 2-4 grade dolomite (Wutai) were 128 yuan/mt. The mainstream ex-factory price of 75 ferrosilicon in Shaanxi was 5,600-5,700 yuan/mt.

Supply and demand

Recently, a magnesium plant in Shaanxi resumed production, but it mainly produces high-quality magnesium ingots. The market demand for high-quality dolomite is expected to increase. Considering the ongoing production suspension in Wutai, the supply of high-quality dolomite remains sufficient due to ample inventory reserves. Yesterday, ferrosilicon futures fluctuated upward, with the most-traded contract fer2509 closing at 5,436 yuan, up 178 yuan MoM. In the spot market, downstream demand was in the off-season, weakening the ferrosilicon market's absorption capacity. The supply-demand pattern gradually weakened, leading to subdued market sentiment. Short-term ferrosilicon prices are expected to remain stable.

Magnesium ingot

prices

Today, transaction prices of magnesium ingots in Fugu were 16,100-16,200 yuan/mt, down 50 yuan/mt from yesterday. China's FOB price held steady at $2,220-2,300/mt.

Supply and demand

Yesterday, the magnesium ingot market was in the doldrums. Due to sluggish trading earlier in the week, inventory pressure increased at some producers, prompting price concessions in major production areas. The trading center shifted downward. Supply side, spot magnesium ingots were limited in major production areas. Demand side, the off-season in magnesium and aluminum alloy sectors negatively impacted procurement demand. Overseas summer break also reduced foreign orders as stockpiling was completed earlier. Demand-side support remained weak. Overall, the magnesium market showed a weak supply-demand pattern, with prices likely to fluctuate rangebound.

Magnesium alloy

prices

China's mainstream tax-inclusive ex-factory price of magnesium alloy was 17,700-17,900 yuan/mt, while the mainstream FOB price was $2,480-2,510/mt.

Supply and demand

Recently, major magnesium alloy producers continued expanding capacity, increasing supply. Intensified competition drove processing fees to low levels. According to a producer, orders declined due to the off-season in die-casting, and weak demand-side support exacerbated inventory pressure. Magnesium alloy processing fees are expected to remain low.

Magnesium powder

Price

The mainstream tax-included ex-factory prices of 20-80 mesh Chinese magnesium powder in the market range from 17,400 to 17,600 yuan/mt, a decrease of 50 yuan compared to the previous trading day; the Chinese FOB price ranges from $2,370 to $2,450/mt.

Supply and demand

The magnesium powder market price has shown a pullback trend due to the decline in raw material prices. According to feedback from the export market, overseas buyers have a strong desire to bargain down prices, and the actual transaction price continues to hover in the low range. The current market trading atmosphere is sluggish, with ongoing price negotiations between buyers and sellers.

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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