Magnesium prices rise slightly, with strong market demand for magnesium powder [SMM Magnesium Morning Meeting Summary]

Published: Aug 8, 2025 09:45

Save

[SMM Magnesium Morning Meeting Summary: Magnesium Prices Rise Slightly, Strong Demand in Magnesium Powder Market] Yesterday, the magnesium market generally showed a generally stable with slight rise trend. The price of dolomite, a raw material, remained stable with sufficient supply. However, demand rebounded as magnesium plants resumed production, and it is expected that prices will remain firm in the future. Ferrosilicon futures fell by 1.22%, but spot supply was tight, with strong price support at the bottom, and it may fluctuate rangebound in the short term. For magnesium ingots, the quoted price in the Fugu area increased to 17,250 yuan/mt. Low inventory supported manufacturers in refusing to budge on prices, and transactions recovered to some extent. However, the buying and selling game in the overseas FOB market intensified, with quoted prices narrowing slightly to $2,380-$2,390/mt. Magnesium alloy prices fluctuated with raw materials, but due to the low processing fee and the inverted price spread between aluminum and magnesium, profits were under pressure. It is expected that prices will remain firm in the short term. Magnesium powder demand was strong, with increased transaction volumes driving enterprise procurement. Prices remained high, with FOB quoted prices at $2,510-$2,580/mt. Overall, magnesium ingots and magnesium powder have strong support, while ferrosilicon and magnesium alloys may continue to fluctuate.

SMM August 8 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

for 1-3 grade dolomite (Wutai) ex-factory prices excluding tax stood at 78 yuan/mt, while 2-4 grade dolomite (Wutai) ex-factory prices excluding tax were 128 yuan/mt. In Shaanxi, the mainstream ex-factory price for 75 ferrosilicon ranged between 5,800-5,900 yuan/mt.

Supply and demand

Dolomite prices remained stable yesterday with ample market supply. However, demand increased as magnesium plants resumed production, and prices are expected to remain firm going forward. The most-traded ferrosilicon futures contract 2509 closed at 5,834 yuan yesterday, down 72 yuan or 1.22%. In the spot market, ferrosilicon producers faced tight spot supply, providing strong support at the price bottom. Given that demand recovery still requires time, prices are likely to fluctuate rangebound in the near term.

Magnesium ingot

prices

As of the previous working day, mainstream quotations in Fugu held steady at 17,250 yuan/mt, up 150 yuan/mt from the prior session. China's FOB price was quoted at $2,340-2,440/mt.

Supply and demand

Mainstream transaction prices for magnesium ingots in Fugu stabilized at 17,200 yuan/mt yesterday, with trading volume rebounding slightly. Supported by the digestion of previous futures orders and low inventory, magnesium producers maintained strong reluctance to budge on prices. Downstream magnesium powder demand performed notably well, reinforcing market bottom support. Overseas, downstream buyers grew more cautious, showing weaker order placement willingness. The mainstream FOB quotation range narrowed slightly to $2,380-2,390/mt, with a clear tug-of-war between sellers and buyers.

Magnesium alloy

prices

As of the previous working day, China's mainstream tax-inclusive ex-factory prices for magnesium alloy were 18,850-18,950 yuan/mt, while the mainstream FOB price stood at $2,580-2,660/mt.

Supply and demand

Magnesium ingot prices rose slightly yesterday, driving parallel movements in magnesium alloy prices. However, intense "rat race" competition in the magnesium alloy market has kept processing fees rangebound at low levels for an extended period. An alloy enterprise executive noted that the aluminum-magnesium price spread has remained inverted long-term, especially for AZ91D alloy with higher aluminum content, pushing costs near breakeven. With strong bottom support, magnesium alloy prices are expected to stay firm.

Magnesium powder

prices

As of the previous working day, mainstream tax-inclusive ex-factory prices for 20-80 mesh Chinese magnesium powder were 18,400-18,600 yuan/mt, with FOB prices at $2,510-2,580/mt.

Supply and demand

Yesterday, supported by the prices of raw materials, the magnesium powder market fluctuated at highs. The downstream transaction volume increased significantly, driving magnesium powder enterprises to increase their procurement of magnesium ingots. Overall demand was strong.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

Silicon Metal Market Review for January and Outlook for February

In January, the silicon metal market experienced a relatively loose supply-demand balance, with a theoretical inventory buildup of approximately 30,000 mt. In February, both supply and demand contracted simultaneously, and the market is expected to show a tight balance or minor destocking. The current high industry inventory still requires time to be digested, and the sustainability of destocking remains a key variable affecting price trends and market sentiment.

17 hours ago

21 hours ago

A plant in northern China is calling for bids for indium ingots and bismuth ingots

SMM, February 6 - According to SMM’s investigation of market information, a large smelter in northern China began public bidding for a certain quantity of indium ingots and bismuth ingots starting yesterday. Market sources indicate that the starting price for these indium ingots exceeds 4,000 yuan per kilogram, while the starting price for bismuth ingots is above 150,000 yuan per ton. The bidding results are expected to be announced before the Spring Festival. Market participants note that, given the clear trend of sluggish trading activity ahead of the Spring Festival, the timing of this bidding is not ideal. However, the relatively favorable starting prices have generated considerable market anticipation for the outcome of the bidding.

21 hours ago

Feb 5, 2026 19:18

[SMM Analysis] Futures Lack Momentum to Rise Further, Pre-Holiday Demand Stalls, and Stainless Steel Social Inventory Accumulation Intensifies

Feb 5, 2026 19:18