The Magnesium Market Stabilized Weakly, Awaiting the Release of Demand Periods [SMM Magnesium Morning Meeting Minutes]

SMM Magnesium Morning Meeting Minutes on September 9:

Magnesium raw material

prices

The ex-factory tax-exclusive 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

Dolomite prices remained stable with ample market supply. Demand side, production resumptions at magnesium plants boosted procurement demand, supporting steady delivery-to-factory prices. The most-traded ferrosilicon futures contract (sf2509) closed at 5,624 yuan/mt yesterday, up 40 yuan (0.72%). Spot market, ferrosilicon trading remained sluggish as steel tenders gradually entered the market, awaiting price guidance. Short-term spot prices are expected to stay in the doldrums.

Magnesium ingot

prices

As of the last working day, mainstream quotations in Fugu were flat at 16,900-17,000 yuan/mt. China’s FOB price was quoted at $2,350-2,420/mt.

Supply and demand

The magnesium ingot market continued its tug-of-war between sellers and buyers, with prices trending weakly. Mainstream transaction prices held at 16,900 yuan/mt, while daily trading improved slightly. Some foreign trade orders entered the market yesterday, providing a modest demand boost. Overseas buyers remained cautious, particularly for October and later shipments, though spot offers mostly hovered around $2,350-2,400/mt. Weakness is likely to persist in the near term.

Magnesium alloy

prices

As of the last working day, China’s mainstream tax-inclusive ex-factory prices for magnesium alloy stood at 18,550-18,700 yuan/mt, with FOB prices at $2,560-2,640/mt.

Supply and demand

Magnesium alloy prices stabilized, supported by new demand from NEVs and EVs. Low inventory levels are expected to sustain firm alloy processing fees. Some producers reported minor upward price adjustments, but actual order execution requires further monitoring due to market liquidity constraints.

Magnesium powder

prices

As of the last working day, China’s mainstream tax-inclusive ex-factory prices for 20-80 mesh magnesium powder ranged at 18,100-18,300 yuan/mt, with FOB prices at $2,520-2,570/mt.

Supply and demand

Magnesium powder trading volume remained stable overall, though procurement orders at powder plants showed no significant increase. The market is currently in the peak delivery period for overseas orders, with the next wave of procurement demand expected to be gradually released in the next period.