As of press time, the high-low price spread in 2025 narrowed from 2400 yuan to4350 yuan, with magnesium price volatility shrinking 55% YoY, driven primarily by the strategic optimization of domestic demand structure. The structural upgrade of technical domestic demand replacing resource exports has facilitated stable magnesium price movements.

On the raw material side, dolomite prices show upward momentum influenced by reforms in the tender model, while demand-side magnesium smelting production rose 5.7% MoM to 85,000 mt, providing strong support. The ferrosilicon market remains supply-heavy with weak demand, balancing electricity price support against accumulating inventory. In energy costs, lump coal faces pressure from loose supply-demand dynamics, while semi-coke prices hold firm due to maintenance cycles. For hidden costs, normalized temperatures boosted smelting efficiency by 10%-15%, coupled with eliminated heat-prevention expenses and enhanced production stability, driving a notable pullback in overall costs.

[Weekly SMM Data: Production Rebounds, Inventory Diverges; Low Prices Prompt Purchases but Overall Pressure Remains] This week, the weekly production of a national sample of magnesium plants reached 17,416 mt, with an operating rate of 57%, up 3.3% MoM. The production site inventory increased by 6.5% MoM, mainly due to sluggish transactions in the first half of the week caused by bearish market sentiment. Although subsequent price protection policies stimulated some purchases, overall inventory still showed an accumulation trend. Social inventory slightly rose by 0.61%, but monthly inventory decreased by 4.98% MoM. Traders maintained stable inventory levels after completing deliveries and taking advantage of low prices for restocking, coupled with concentrated foreign trade deliveries in August, leading to a continued destocking trend in social inventory.

[MM Magnesium Weekly Review: This Week, the Magnesium Market Continues to Be in the Doldrums as Downstream Players Await Demand Recovery] This week, the magnesium market showed a pattern of weak supply and demand, with prices under pressure. On the raw material side, dolomite prices remained stable, with regional supplies showing some differentiation but overall stability; demand gradually recovered as magnesium plants resumed production. The main producing areas quoted magnesium ingot prices at 17,000-17,100 yuan/mt, down 250 yuan MoM, with increased supply and weak domestic demand, cautious foreign trade inquiries, and inventory pressure leading manufacturers to offer discounts for sales promotions. FOB quotes also declined, showing a divergence between spot and forward order prices. Both magnesium powder and magnesium alloy prices followed the weak trend of magnesium ingots. Short-term buying the dip in magnesium powder spurred some demand recovery, but domestic trade was still constrained by steel mill maintenance, while downstream buyers of magnesium alloys mostly adopted a wait-and-see approach and diversified their purchases to control costs. Overall, the current market is dominated by destocking and waiting, and it is expected that as foreign trade demand gradually recovers and cost support strengthens, magnesium prices will stop falling and stabilize, entering a phase of fluctuating rangebound.

[smm domestic analysis: magnesium hidden costs pull back to release benefits in september, raw material market sees price divergence amid tug-of-war between longs and shorts] the cost structure in september 2025 may feature stable raw material costs and a decline in hidden costs.

[smm magnesium morning meeting summary: raw material stability leads to lower magnesium prices, downstream market remains cautious] today, the overall magnesium market continued to be in the doldrums. magnesium ingot prices slightly decreased to 17,100-17,200 yuan/mt, with sluggish downstream purchasing and a persistently weak supply and demand situation. on the raw material front, dolomite prices remained firm due to production resumptions driving up demand, while ferrosilicon experienced inventory buildup and fluctuation. both magnesium alloys and magnesium powder followed the weak trend of magnesium ingots, with the downstream sector mostly adopting a wait-and-see approach and operating based on actual needs. it is expected that magnesium product prices will face pressure and fluctuate rangebound in the short term, with future attention focused on the progress of production resumptions and the recovery of overseas orders.

[smm magnesium morning meeting summary: magnesium plants loosen price stance as low-priced supplies emerge supply and demand pressure keeps magnesium prices in the doldrums] on august 27, the smm magnesium morning meeting indicated that with the end of maintenance at magnesium plants, recent magnesium ingot supply has increased. coupled with a lull in demand as old orders have been completed and new delivery dates are still far off, this has led to a lack of demand support for magnesium prices. overall, it is expected that magnesium prices will maintain a weak trend in the short term.

[SMM Survey: Global Green Magnesium Industry Updates - Canadian Magnesium Ore Approved, Australian Companies Make Breakthroughs in Hydrogen Storage and Low-Carbon Smelting] Recently, the global green magnesium industry and related technologies have made several key advancements: The Record Ridge magnesium ore project in British Columbia, Canada, has been approved to proceed without an environmental impact assessment, with an expected 10.8 million mt of magnesium resources to be mined; Australia's Carbon280 has launched a 100 kW metal hydride hydrogen storage pilot, using magnesium powder to achieve zero-loss hydrogen storage; Verde Magnesium, in collaboration with Metso, is advancing a low-carbon brucite smelting process, significantly reducing carbon emissions; Latrobe Magnesium has been granted approval to commission a demonstration plant for extracting magnesium from brown coal fly ash, achieving comprehensive utilization of multiple by-products. These projects collectively focus on the green development and low-carbon application of magnesium resources, providing critical materials and technological support for energy transition.

[smm magnesium morning meeting summary: raw material stability keeps magnesium prices in the doldrums, downstream wait-and-see sentiment strong] today, the overall pattern of major magnesium product prices was weak and stable. among them, the mainstream quotations for fugu magnesium ingots were 17,200-17,300 yuan/mt, a slight decrease of 50 yuan from the previous day. magnesium alloy and magnesium powder prices remained steady, quoted at 18,850-18,950 yuan/mt and 18,400-18,600 yuan/mt, respectively. on the raw material side, dolomite prices were firm, and ferrosilicon fluctuated rangebound, providing some cost support to magnesium prices. however, maintenance at downstream steel mills led to slower demand, with domestic purchasing sentiment being weak. although there were many overseas inquiries, it was difficult to convert them into large orders. the market as a whole had a strong wait-and-see sentiment, and short-term prices faced pressure.

[SMM Magnesium Ingot Spot Update: Weak Magnesium Market Struggles to Rise Due to Sluggish Demand] SMM reported on August 25 that the magnesium market started the week with a weak and stable performance. Although supply-side pressures gradually emerged, the demand side failed to provide effective support. Overseas orders were "all talk and no action," while domestic consumption remained sluggish. Against the backdrop of a weakening supply-demand structure, magnesium prices lacked upward momentum and were expected to continue under pressure, operating around 17,200 yuan/mt in the short term.