Raw material prices remain stable, magnesium prices adjust slightly, with strong wait-and-see sentiment in the market [SMM Magnesium Morning Meeting Summary]

Published: Aug 14, 2025 09:19

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[SMM Magnesium Morning Meeting Summary: Raw Material Prices Steady, Magnesium Prices Adjusted Slightly, Strong Wait-and-See Sentiment in the Market] SMM reported on August 14 that on the raw material side, dolomite prices remained stable with ample market supply, but demand increased as magnesium producers resumed production. The most-traded contract of ferrosilicon futures fell by 1.02%, and in the spot market, some producers faced tight supply, showing strong reluctance to budge on prices, leading to a stalemate in overall supply and demand. For magnesium ingots, the mainstream quotations in the Fugu area slightly decreased to 17,300-17,400 yuan/mt. Producer inventories remained low, with insufficient downstream demand support. Overseas orders were expected to be released after the summer break, and the FOB quotation range narrowed to $2,420-2,430/mt. Magnesium alloy prices remained high and stable, with supply slightly reduced due to producer maintenance. Downstream just-in-time procurement dominated, and the market showed weak supply and demand. After the initial release of demand, the magnesium powder market entered a wait-and-see phase, but overseas orders continued to support steady production growth, with FOB quotations at $2,530-2,590/mt. Overall, all segments of the magnesium market showed a stalemate with different characteristics, and short-term prices may continue to fluctuate.

SMM Magnesium Morning Meeting Summary on August 14:

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 is 5,800-5,900 yuan/mt.

Supply and Demand

Dolomite prices remain stable, with ample market supply. However, demand has increased with the resumption of production at magnesium plants, and prices are expected to remain firm. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,794, down 1.02% or 60 yuan. In the spot market, some ferrosilicon producers are experiencing tight spot supply and have strong reluctance to budge on prices. On the demand side, the new round of tender prices for ferrosilicon has not yet been announced, and the market sentiment is wait-and-see. Overall, the supply and demand situation in the ferrosilicon market is in a stalemate, and prices are expected to remain stable in the short term.

Magnesium Ingot

Prices

As of the last working day, the mainstream quotation of magnesium ingot in Fugu remained at 17,300-17,400 yuan/mt, down 50 yuan from the previous working day. The China FOB price was reported at 2,390-2,430 US dollars/mt.

Supply and Demand

Magnesium prices fell slightly to 17,300-17,400 yuan/mt yesterday, and the market remains in a stalemate. From the production side, although production remains stable, producer inventory is still low. From the downstream demand side, there is currently no strong support, and some overseas demand has been released in advance. New downstream demand will not be released until after the summer break. Recently, the FOB quotation range has narrowed again, with the mainstream quotation remaining at 2,420-2,430 US dollars/mt.

Magnesium Alloy

Prices

As of the last working day, the mainstream tax-included ex-factory price of magnesium alloy in China was 18,950-19,050 yuan/mt, and the mainstream FOB price of magnesium alloy in China was 2,610-2,670 US dollars/mt.

Supply and Demand

Magnesium alloy prices remain high and firm. On the supply side, normal equipment maintenance at some magnesium alloy producers has led to a slight decrease in magnesium alloy supply. On the demand side, the firm magnesium alloy prices have led to downstream rigid demand restocking, with weak purchase willingness. Overall, the magnesium alloy market is showing a weak supply and demand situation, and prices are expected to come under pressure in the short term.

Magnesium Powder

Prices

As of the last working day, the mainstream tax-included ex-factory price of 20-80 mesh magnesium powder in China was 18,500-18,700 yuan/mt, and the China FOB price was 2,530-2,590 US dollars/mt.

Supply and Demand

After the concentrated release of demand in the magnesium powder market in the early stage, the market has entered a wait-and-see phase. However, overseas order demand remains robust, driving a steady increase in overall production.

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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