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The stalemate in supply and demand continues, with magnesium prices stabilizing at highs [SMM Magnesium Morning Meeting Summary]

iconJul 10, 2025 09:31
Source:SMM
[SMM Magnesium Morning Meeting Summary: The stalemate in supply and demand continues, with magnesium prices stabilizing at highs] Material prices have remained stable, with raw coal prices bottoming out and rebounding. The cost support for magnesium ingots is strong. On the supply and demand side, the magnesium ingot market is showing a situation of weak supply and demand. It is expected that magnesium ingot prices will remain stable.

SMM Magnesium Morning Meeting Notes on July 08:

Magnesium Raw Materials

Prices

The ex-factory price (tax not included) of 1-3 grade dolomite (Wutai) is 78 yuan/mt, and that of 2-4 grade dolomite (Wutai) is 128 yuan/mt. The mainstream ex-factory price of 75 ferrosilicon in Shaanxi ranges from 5,600 to 5,700 yuan/mt.

Supply and Demand

 

Recently, the market price of dolomite has remained stable. The inventory in Wutai, the main producing area, remains abundant, while producers in other regions are meeting market demand gaps through flexible restocking. Considering the overall supply-demand balance, dolomite prices are likely to remain stable in the short term. Yesterday, the futures market for ferrosilicon fluctuated, with the most-traded ferrosilicon 2509 futures contract closing at 5,390, up 40 yuan from the previous trading day. In the spot market, ferrosilicon supply is sufficient. Supported by the rigid demand from steel mills entering tenders, ferrosilicon prices are expected to remain stable in the short term.

Magnesium Ingot

Prices

Today, the transaction price of magnesium ingot in Fugu ranges from 16,300 to 16,400 yuan/mt, up 150 yuan from the previous trading day. The China FOB price remains unchanged at 2,210-2,310 US dollars/mt.

Supply and Demand

Yesterday, magnesium ingot prices remained stable. The mainstream quotation for 99.90% magnesium ingot in the main producing area was 16,400 yuan/mt. Some producers sold at lower prices. Affected by factors such as the stabilization of magnesium prices at highs and the low purchase prices accepted by downstream buyers, downstream traders had low purchase willingness, and transactions were relatively mediocre yesterday.

Magnesium Alloy

Prices

The mainstream tax-included ex-factory price of magnesium alloy in China ranges from 17,950 to 18,050 yuan/mt, and the mainstream FOB price of magnesium alloy in China ranges from 2,510 to 2,520 US dollars/mt.

Supply and Demand

Yesterday, domestic magnesium alloy prices remained stable. On the supply side, production cuts by some producers led to a slight contraction in market supply. On the demand side, affected by the temporary lull after the concentrated delivery of overseas orders and the weak demand during the traditional off-season in the domestic die-casting industry, the market showed a weak supply-demand balance. The current price is mainly supported by the cost of magnesium ingot raw materials. It is expected that magnesium alloy prices will continue to fluctuate at highs in the short term.

Magnesium Powder

Prices

The mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China ranges from 17,600 to 17,800 yuan/mt, and the China FOB price ranges from 2,420 to 2,460 US dollars/mt.

Supply and Demand

Currently, the magnesium powder market shows a weak supply-demand balance. On the supply side, affected by the high price of magnesium ingot raw materials and capacity constraints, the overall supply remains low. On the demand side, due to cautious purchasing in end-use applications, the actual trading volume has not effectively increased. Although production costs supported the temporary stability of prices, market trading activity was insufficient, and both upstream and downstream players adopted a wait-and-see attitude. It is expected that a weak balance will be maintained in the short term.

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