[SMM Magnesium Morning Meeting Summary: Significant Cost Support, Magnesium Prices Rise Slightly] In the morning, significant transactions were made at the price of 17,100, with all magnesium factories making deals at this price. At this price level, there was a shortage of spot cargo and undersupply, indicating strong bottom support. However, the number of high-price transactions in the main production areas was limited, and high-price transactions were sluggish. The overall magnesium market showed a pattern of weak supply and demand, and it is expected that magnesium prices will continue to consolidate at high levels in the subsequent period.

[SMM Analysis: New National Standards Drive Material Revolution, Magnesium Alloy Becomes the Core Engine for Lightweighting of E-bikes]Driven by the new national standard for e-bikes (GB 17761—2024) implemented on September 1, 2025, magnesium alloy, with its "dual advantages of lightweight performance and cost," is reshaping the material system of the industry.

[SMM Magnesium Morning Meeting Summary: Raw Material Prices Hold Steady, Magnesium Products Continue High-Level Consolidation] On August 6, magnesium raw material prices remained stable. The ex-factory price of 75 ferrosilicon in Shaanxi was 5,800-5,900 yuan/mt, and the most-traded magnesium futures contract closed at 5,716 yuan/mt. Fugu magnesium ingot quotes held steady at 17,050-17,150 yuan/mt, with FOB quotes at $2,340-$2,440/mt. Magnesium alloy prices were 18,700-18,800 yuan/mt, with FOB quotes at $2,580-$2,660/mt. Magnesium powder prices were 18,250-18,450 yuan/mt, with FOB quotes at $2,510-$2,580/mt. The market showed a differentiated trend: supply and demand in the ferrosilicon market both increased; magnesium ingot trading was sluggish, but producers refused to budge on prices; magnesium alloy benefited from rising demand due to the new national standard; and the magnesium powder market continued to wait and see. It is expected that each variety will continue its current operating trend in the short term, with a focus on market changes in mid-August.

[SMM Magnesium Ingot Spot Report: Strong Reluctance to Budge on Prices Among Producers, Market Awaits Demand Recovery] On August 5, magnesium ingot prices in the Fugu region were quoted at 17,050-17,150 yuan/mt, with FOB prices at $2,340-$2,440/mt. Market transactions were sluggish, but producers showed a clear reluctance to budge on prices, with some manufacturers signing futures orders at 17,050 yuan/mt. A Japanese trading company's tender for 99.90% magnesium ingot was concluded at a FOB price of $2,320/mt. Affected by the traditional off-season, both domestic and overseas market transactions remained sluggish, with some magnesium producers initiating maintenance plans in early August. It is expected that a new tug-of-war between sellers and buyers will emerge in the market by mid-August, with short-term prices likely to remain in the doldrums. SMM will continue to monitor market developments.

[SMM survey: Australia and the US accelerate breakthroughs in magnesium industrialisation, South Korea leads in high-end alloy applications] This week, the global magnesium market has shown a diversified development trend. Latrobe Magnesium (LMG) in Australia has received an extension of its environmental protection permit, accelerating the commissioning of its demonstration plant and land disposal, while shifting its strategy to export to the US. However, the market remains cautious about its high-debt model. The US Government Accountability Office (GAO) report has proposed a new approach to extracting critical minerals such as magnesium from desalination scrap. Although technically feasible, industrialisation still faces challenges. The market for degradable magnesium alloys in South Korea has grown rapidly, with strong demand in the medical and NEV sectors. However, the issue of raw material import dependency remains unresolved. Additionally, magnesium ingot inventory has declined, and active procurement by Japan and South Korea has supported prices fluctuating at highs. The market may maintain resilience in the short term, but risks of economic downturn and capacity release should be monitored.

[SMM Magnesium Morning Meeting Summary: Weak Market Demand, Magnesium Prices Under Pressure] The low-priced magnesium supply at 17,000-17,050 yuan/mt in the market yesterday morning was gone in a flash. Traders were active in inquiries during the morning, which influenced magnesium producers in the main production areas to have a strong reluctance to budge on prices. Magnesium producers held firm on their quotes at 17,100-17,200 yuan/mt. However, due to the low take-order prices from downstream buyers and the current strong fear of high prices, transactions at the high end were sluggish.

[SMM Magnesium Morning Meeting Summary: Magnesium prices consolidate at high levels, with strong wait-and-see sentiment downstream] Last week, the magnesium market generally showed a consolidation trend at high levels. After the "anti-rat race" policy stimulated the concentrated release of speculative demand, magnesium ingot prices surged by 800 yuan/mt in a single week. However, the price rally was subsequently hindered by insufficient purchase willingness from traders, and magnesium ingot prices in the Fugu region slightly corrected to 17,050-17,150 yuan/mt. On the raw material side, dolomite prices remained stable with sufficient supply. Affected by the decline in futures, wait-and-see sentiment in the ferrosilicon spot market intensified. The ex-factory price of 75 ferrosilicon in Shaanxi was reported at 5,800-5,900 yuan/mt, and it may continue to decline in the future. The magnesium alloy and magnesium powder markets were sluggish due to high prices suppressing demand. The FOB price of magnesium alloy was $2,580-2,660/mt, and the FOB price of magnesium powder was $2,510-2,580/mt. In the short term, with cost support and weak demand competing, magnesium prices may maintain a fluctuating trend.

[SMM Magnesium Weekly Review: Magnesium Prices Consolidate at High Levels, Market Operates Weakly and Stably in the Short Term] This week, the magnesium market generally exhibited a consolidation trend at high levels. Prices of 99.90% magnesium ingot in the main producing areas fluctuated within the range of 17,100-17,200 yuan/mt. At the beginning of the week, prices slightly increased due to restocking by traders, but subsequently pulled back slightly as demand failed to keep up. In overseas markets, FOB quotes remained stable, but transactions were sluggish. Supported by just-in-time procurement from Japan and South Korea, the European summer break dampened demand, resulting in a slight downward pressure on actual transaction prices. Magnesium powder and magnesium alloy prices followed the trend of raw material magnesium ingot, with sluggish market transactions. Downstream buyers purchased as needed, and wait-and-see sentiment was strong. Dolomite prices remained stable, with supply-demand balance providing firm support for magnesium ingot costs.

[SMM Magnesium Morning Meeting Summary: Support for Refusing to Budge on Prices Weakens, Prices May Remain Weak in the Future] Today, magnesium producers' reluctance to budge on prices has slightly weakened. There are low-priced supplies available in the market at 17,100 yuan/mt, but mainstream large producers are still maintaining firm quotes at 17,200 yuan/mt. The center of the overall market quotes has pulled back slightly.

In the late July, the positive effects of the "anti-rat race" competition policy began to emerge, and the commodity market continued to heat up. The ferrous metals sector also rose in tandem, strongly driven by the soaring coking coal prices. Affected by the sharp jumps in the prices of core raw materials for primary magnesium, such as coal and ferrosilicon, coupled with the favorable conditions for a phased upward movement in the magnesium market's fundamentals, magnesium prices broke through the 17,000 yuan mark, rising to 17,100-17,200 yuan/mt.