Supported by firm raw material prices, magnesium products remain at a high level of consolidation [SMM Magnesium Morning Meeting Summary]

Published: Jul 31, 2025 09:33

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[SMM Magnesium Morning Meeting Summary: Supported by Firm Raw Material Prices, Magnesium Products Remain High and Range-bound] On July 31, the prices of magnesium raw materials remained firm. The ex-factory price of 75 ferrosilicon in Shaanxi was 5,800-5,900 yuan/mt, and the most-traded futures contract closed at 6,008 yuan/mt. The quotes for Fugu magnesium ingots held steady at 17,100-17,200 yuan/mt, with FOB quotes at $2,350-2,460/mt. Magnesium alloy prices remained at 18,750-18,850 yuan/mt, with FOB quotes at $2,600-2,670/mt. Magnesium powder prices were at 18,300-18,500 yuan/mt, with FOB quotes at $2,520-2,590/mt. The market as a whole exhibited characteristics of weak supply and demand: the supply side maintained a tight balance due to policy regulations and planned maintenance; the demand side only maintained just-in-time procurement, with sluggish trading. The ferrosilicon market received support from the initiation of tenders by steel mills, and magnesium-based products remained high due to cost support, but actual transactions were limited. It is expected that the market will continue to fluctuate at highs in the short term, with a focus on the release of demand in August.

SMM Magnesium Morning Meeting Summary on July 31:

Magnesium raw material

prices

: The ex-factory price (excluding tax) 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 is 5,800-5,900 yuan/mt.

Supply and demand

: Recently, dolomite prices have remained stable with sufficient market supply. However, demand has increased with the resumption of production at magnesium plants, and it is expected that prices will remain firm in the future. Yesterday, the futures market for ferrosilicon fluctuated upward, with the most-traded ferrosilicon futures contract 2509 closing at 6,008, up 0.77% or 46 yuan. In the spot market, ferrosilicon supply is low, and with steel mills gradually entering the market for tenders at month-end, it is expected that ferrosilicon prices will remain firm.

Magnesium ingot

prices

: Yesterday, the mainstream quotation for magnesium ingots in Fugu area remained at 17,100-17,200 yuan/mt, unchanged from the previous working day. The China FOB price was reported at 2,350-2,460 US dollars/mt.

Supply and demand

: Currently, the trading atmosphere in the magnesium market is sluggish, with producers showing strong reluctance to budge on prices. On the one hand, influenced by policy guidance, prices are supported by controlling capacity. On the other hand, planned maintenance shutdowns at some magnesium plants in August will lead to tighter supply, and existing futures orders are expected to be delivered in early August. Demand side, there have been only sporadic transactions in the market recently, with some downstream demand yet to be released. It is expected that the demand trend in August will be clearer. Currently, magnesium prices are still fluctuating at highs.

Magnesium alloy

prices

: Yesterday, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,750-18,850 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,600-2,670 US dollars/mt.

Supply and demand

: Yesterday, supported by the high prices of magnesium ingot raw materials, magnesium alloy prices continued to remain firm. However, the downstream market's acceptance of current prices is limited, with procurement behavior mainly focused on meeting rigid demand, resulting in a relatively sluggish trading atmosphere in the overall market.

Magnesium powder

prices

: Yesterday, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,300-18,500 yuan/mt, and the China FOB price was 2,520-2,590 US dollars/mt.

Supply and demand

: The magnesium powder market has maintained a stable trend recently. Downstream procurement slowed significantly after centralized restocking at the beginning of the month, with market demand release falling short of expectations. The trading atmosphere has turned sluggish, and trading volume has pulled back compared to the previous period.

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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