Quotations Held Steady with Sluggish Trading, Market Dominated by Wait-and-See Sentiment [SMM Magnesium Morning Meeting Minutes]

Published: Sep 5, 2025 09:20

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[SMM Magnesium Morning Meeting Summary: Quotations Held Steady with Sluggish Transactions and Strong Wait-and-See Sentiment] This week, the magnesium market generally exhibited a pattern of firm quotations but sluggish transactions. The quoted price for Fugu magnesium ingot was 16,960-17,050 yuan/mt (↑50), with FOB prices at $2,360-2,420/mt. Downstream acceptance of high prices remained low, and just-in-time procurement dominated. On the raw material side, the delivery-to-factory price of dolomite remained firm due to transportation factors. Ferrosilicon was in the doldrums, affected by the decline in ferrous metals series futures and weak demand from steel mills. Magnesium alloy followed the upward fluctuation of magnesium ingot, with low inventory supporting firm processing fees. The magnesium powder market was dominated by a strong wait-and-see sentiment, and short-term fluctuations are expected to continue. As magnesium plants resume production, supply pressure gradually emerges, and magnesium prices are expected to remain under pressure in the short term.

SMM Magnesium Morning Meeting Minutes on September 5:

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 gradual production resumptions at magnesium plants, procurement demand has shown an increasing trend. Considering recent abundant rainfall in Shanxi and transportation difficulties, dolomite delivery-to-factory prices are expected to fluctuate upward. Yesterday, the most-traded ferrosilicon futures contract 2509 closed at 5,496, down 40 (0.72%). Spot market-wise, affected by fluctuating downward trends in ferrous futures, trading activity was sluggish, compounded by weak end-use demand from steel mills, with 72# ferrosilicon spot prices in the doldrums.

Magnesium ingot

prices

As of the previous working day, mainstream quotations in Fugu were 16,960-17,050 yuan/mt, up 50 yuan/mt. China’s FOB price was quoted at $2,360-2,420/mt.

Supply and demand

Domestic magnesium plants maintained mainstream quotations at 17,000 yuan/mt yesterday. Despite high offers, downstream acceptance remained low amid strong bearish sentiment, with actual transactions dominated by just-in-time procurement, resulting in overall sluggish trading. With gradual production resumptions at magnesium plants, supply pressure has increased, suggesting magnesium prices will continue under pressure with notable upward resistance in the short term.

Magnesium alloy

prices

As of the previous working day, China’s mainstream tax-included ex-factory price for magnesium alloy was 18,600-18,750 yuan/mt, with FOB prices at $2,570-2,640/mt.

Supply and demand

Yesterday, magnesium alloy prices fluctuated upward, tracking the rise in magnesium ingot markets. Positive demand signals emerged: supply side, manufacturer inventories were low; demand side, some downstream enterprises engaged in procurement based on production needs, slightly improving market activity and bolstering confidence. Overall, the magnesium alloy market shows a tight balance, with alloy processing fees expected to remain firm.

Magnesium powder

prices

As of the previous working day, China’s mainstream tax-included ex-factory price for 20-80 mesh magnesium powder was 18,150-18,350 yuan/mt, with FOB prices at $2,520-2,580/mt.

Supply and Demand

The purchase willingness of magnesium powder producers remained generally weak. Although raw material prices experienced a slight rise, downstream enterprises mostly maintained a wait-and-see attitude, anticipating further price adjustments before entering the market. If demand gradually recovers in the subsequent period, magnesium powder prices may receive phased support. In the short term, prices are expected to maintain a stable but slightly fluctuating trend.

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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