The Decline in Magnesium Prices Temporarily Halted, Demand Recovery Still Awaits Observation [SMM Magnesium Morning Meeting Minutes]

Published: Sep 3, 2025 09:21

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[SMM Magnesium Morning Meeting Summary: Magnesium Price Decline Temporarily Halted, Demand Recovery Still Under Observation] Yesterday, the magnesium market showed a divergent trend. Fugu magnesium ingot prices were quoted at 16,950-17,050 yuan/mt, with manufacturers' reluctance to budge on prices driving the range up to 17,000-17,200 yuan/mt, and daily transactions exceeded 1,000 mt. FOB prices remained at $2,340-2,400/mt, but overseas trade sentiment was dominated by a wait-and-see attitude. On the raw material side, dolomite prices held steady, while ferrosilicon remained firm due to support from magnesium plant production resumptions. Magnesium alloy followed the upward fluctuation of magnesium ingots, with processing fees staying firm. The magnesium powder market remained sluggish, with downstream buyers exercising caution. Although short-term reluctance to budge on prices is supporting the market, insufficient demand recovery coupled with slow overseas order releases suggests that prices may still face downward pressure in late September.

SMM September 3 Magnesium Morning Meeting Minutes:

Magnesium raw material

prices

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

Supply and demand

Currently, dolomite prices remain stable with ample market supply. Demand side, driven by the gradual resumption of magnesium plant operations, procurement demand has shown growth, and dolomite prices are expected to maintain firmness. Last week, the most-traded ferrosilicon futures contract 2509 closed at 5,528, up 0.77% or 42 points. Spot market-wise, the accelerated production resumptions by magnesium ingot producers have provided strong support for 75% ferrosilicon demand, with prices anticipated to stay firm.

Magnesium ingot

prices

As of the previous working day, mainstream quotations in Fugu region were flat at 16,950-17,050 yuan/mt. China’s FOB price was quoted at $2,340-2,400/mt.

Supply and demand

Yesterday, Fugu producers showed strong reluctance to budge on prices, raising offers to 17,000-17,200 yuan/mt, temporarily halting the downward trend. Downstream response to the price stabilization gradually emerged, with transactions strengthening to over 1,000 mt at mainstream transaction prices of 16,900-17,000 yuan/mt. On the export front, downstream buyers largely adopted a wait-and-see stance toward current offers, with low acceptance. Traders remained cautious, particularly adopting conservative strategies for October and beyond orders. Current mainstream tax-inclusive offers hovered around $2,450/mt, with overall export order activity subdued. Going forward, whether magnesium prices can rise on producers’ price-firming stance depends on actual demand follow-through. However, with overseas quarterly orders gradually being released, prices may remain under pressure in late September.

Magnesium alloy

prices

As of the previous working day, China’s mainstream tax-inclusive ex-factory prices for magnesium alloy ranged between 18,600-18,750 yuan/mt, while FOB prices stood at $2,550-2,620/mt.

Supply and demand

Yesterday, magnesium alloy prices largely followed the upward trend in the ingot market. Some downstream enterprises engaged in just-in-time procurement, with buying sentiment slightly recovering. Processing fee-wise, low alloy inventory provided a buffer, keeping alloy processing fees firm. Some alloy producers reported upward price adjustments, though actual transactions awaited market confirmation.

Magnesium powder

prices

As of the previous working day, mainstream tax-inclusive ex-factory prices for 20-80 mesh Chinese magnesium powder were quoted at 18,150-18,350 yuan/mt, with FOB prices at $2,500-2,550/mt.

Supply and Demand

The magnesium powder market has recently shown sluggish performance, with generally insufficient purchase willingness. Approaching the National Day military parade period, market demand has not exhibited the anticipated signs of release. However, as raw material prices continue to rise, the downstream mentality of "rushing to buy amid continuous price rise and holding back amid price downturn" is gradually emerging. The market outlook requires attention to downstream restocking trends and raw material price fluctuations post-parade. If demand gradually recovers, it is expected to drive market prices toward stabilization and rebound.

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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