Insufficient Demand Follow-Up, Magnesium Prices Jumped Initially and Then Pulled Back Today [SMM Spot Magnesium Ingot Market Update]

Published: Sep 2, 2025 17:41

Save

[SMM Spot Magnesium Ingot Market Update: Insufficient Demand Follow-Through, Prices Jumped Initially and Then Pulled Back Today] Magnesium producers in Fugu collectively refused to budge on prices, raising offers to 17,000-17,200 yuan/mt. However, due to weak downstream acceptance, prices dropped back slightly to 16,900-17,000 yuan/mt in the afternoon, with daily transactions exceeding 1,000 mt. On the export front, the market exhibited strong wait-and-see sentiment, as traders cautiously quoted for forward orders amid low trading activity. Overall, whether the short-term price resilience can hold will depend on demand follow-through. However, pressured by overseas quarterly orders, prices are expected to face downward pressure in late September.

SMM September 2 report: Today, Fugu region's magnesium ingot ex-factory offers stood at 16,950-17,050 yuan/mt, averaging 17,000 yuan/mt, flat from the previous trading day. FOB quotes were $2,370/mt.

Fugu producers showed strong reluctance to budge on prices today, with morning offers raised to 17,000-17,200 yuan/mt, temporarily halting the gradual price decline. However, downstream acceptance of high prices remained limited, resulting in mediocre market response. By afternoon, prices dropped back slightly, with mainstream transaction prices settling at 16,900-17,000 yuan/mt. Trading performance was moderate today, with total volume exceeding 1,000 mt. On the export front, downstream buyers generally adopted a wait-and-see attitude toward current quotes, showing low acceptance. Traders maintained cautious quoting, particularly adopting conservative strategies for October and later orders. Current mainstream tax-inclusive quotes hovered around $2,450/mt, with overall export order activity remaining subdued during the day.

Overall, whether magnesium prices can rise on producers' price support still depends on actual demand follow-through. However, with overseas quarterly orders gradually being released, prices may remain under pressure in late September.

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

Apr 16, 2026 11:45

[SMM Analysis] China's Magnesium Market Diverges: Tightening Export Controls & Softening Domestic Prices

Today, 99.90% magnesium ingot FOB Tianjin port was quoted at $2,500-2,600/mt, with an average price of $2,550/mt, up $50/mt from yesterday. Mainstream quotations for 99.90% magnesium ingot in the main producing areas were 17,050-17,150 yuan/mt, with an average price of 17,100 yuan/mt, unchanged from yesterday. This week, the China magnesium market overall fluctuated downward.

Apr 16, 2026 11:45

Apr 9, 2026 11:23

Latrobe Magnesium Secures $2M Prepayment for U.S. Market Expansion, Targets H2 2026 Deliveries

[SMM Magnesium Express] Latrobe Magnesium secured a $2 million non-dilutive prepayment from its U.S. distribution partner Metal Exchange for commissioning of pyrometallurgical equipment at its Latrobe Valley demonstration plant. Stage 1 capacity is 1,000 tpa, with Stage 2 commercial plant at 10,000 tpa, both allocated to the U.S. market. The U.S. has no domestic primary magnesium production, with ~90% of supply from China. First magnesium metal deliveries are targeted for H2 2026.

Apr 9, 2026 11:23

Apr 9, 2026 11:21

West High Yield Signs $500/tonne Magnesium Ore Deal with Galaxy, Projecting $30M+ Annual Revenue

[SMM Magnesium Express] West High Yield signed a definitive forward sales agreement with Galaxy Trade and Technology for magnesium-rich serpentine ore from its Record Ridge project in British Columbia. The initial two-year term is extendable to nine years, with a unit price of US$500 per metric tonne. Weekly deliveries during production months are expected to range from 6,600 to 7,700 tonnes, representing potential annual revenue exceeding US$30 million. Galaxy has placed a US$5 million deposit in trust for initial ore deliveries.

Apr 9, 2026 11:21