The tug-of-war between sellers and buyers continues, and the short-term market pattern of remaining in the doldrums is difficult to break [SMM Magnesium Morning Meeting Minutes]

Published: Sep 12, 2025 09:30

Save

[SMM Magnesium Morning Meeting Minutes: Tug-of-War Between Sellers and Buyers Continues, Short-Term Market in the Doldrums] Yesterday, mainstream quotations for magnesium ingot in the Fugu area were 16,700-16,800 yuan/mt, down 100 yuan/mt from the previous trading day. In the short term, magnesium prices will face multiple pressures, including supply surplus, continuously accumulating inventory, and delayed downstream demand. The overall market is expected to remain under pressure.

SMM Magnesium Morning Meeting Summary on September 12:

Magnesium Raw Material

Prices

The ex-factory price (excluding tax) for 1-3 cm dolomite (Wutai) was 78 yuan/mt, and the ex-factory price (excluding tax) for 2-4 cm dolomite (Wutai) was 128 yuan/mt; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,900 yuan/mt.

Supply and Demand

Current dolomite prices are stable, with market supply remaining sufficient. Magnesium plants are conducting regular stockpiling, and demand is strong, with delivery-to-factory prices of dolomite expected to remain stable. The most-traded 2509 ferrosilicon futures contract closed at 5,624, down 0.18%, or 10 points. In the spot market, ferrosilicon producers are maintaining a steady supply, and steel tenders are providing bottom support. However, considering HBIS's tender pricing at 5,700 yuan/mt in September, down 330 yuan MoM, the ferrosilicon market remains cautious.

Magnesium Ingot

As of the previous working day, the mainstream quotations for magnesium ingot in Fugu were 16,700-16,800 yuan/mt, down 100 yuan/mt from the previous working day; China's FOB price was $2,340-2,400/mt.

Supply and Demand

Magnesium prices continued to decline yesterday. Some magnesium plants quoted 16,700 yuan/mt in the morning, but there was a strong wait-and-see sentiment among downstream buyers, leading to a sluggish trading atmosphere. Most inquiries were around 16,600 yuan/mt, and trading volume at 16,700 yuan/mt was low. Subsequently, some major production area magnesium plants had to lower their quotes, with transactions in the main production areas occurring at 16,650 yuan/mt. Overall, yesterday's trading showed a characteristic of reduced prices and increased volumes, primarily due to the stimulation of transactions by lower prices. Some downstream customers still have a wait-and-see sentiment, and orders have not been fully released, resulting in insufficient upward momentum. The current magnesium market still needs to reach a consensus on the transaction period to push up magnesium prices.

Magnesium Alloy

As of the previous working day, the mainstream tax-inclusive ex-factory price for magnesium alloy in China was 18,450-18,600 yuan/mt; China's FOB price was $2,560-2,620/mt.

Supply and Demand

Magnesium alloy prices are in the doldrums, following the weak performance of magnesium ingot prices. On the supply side, magnesium alloy producers are maintaining a normal production pace. On the demand side, supported by new demand from NEVs and EVs, some magnesium alloy manufacturers are experiencing tight spot supply, which is expected to help keep alloy processing fees firm.

Magnesium Powder

Prices

As of the previous working day, the mainstream tax-inclusive ex-factory price for 20-80 mesh magnesium powder in China was 17,900-18,100 yuan/mt; China's FOB price was $2,510-2,550/mt.

Supply and Demand

Yesterday, the magnesium powder market was generally active, but prices were under pressure due to the decline in magnesium ingot prices, weakening cost support. Supply side, magnesium powder plants' operating rates continued to rise, production steadily increased, and they actively purchased magnesium ingot raw materials to ensure production; demand side, downstream purchase willingness improved, some domestic trade buyers gradually entered the market to restock, and foreign trade orders remained stable. It is expected that the magnesium powder market will continue to be in the doldrums in the short term, with price trends still influenced by magnesium ingot costs and actual transaction conditions.

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 for 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

16 hours ago

Magnesium Market Breaks Downtrend as Coal Prices Surge, Producers Face Rising Costs

As August began, the magnesium market appeared trapped in a prolonged stalemate.The production-cut tailwinds from July faded, and primary magnesium supply steadily recovered. Meanwhile, overlapping with the overseas summer lull and the domestic die-casting off-season, downstream orders were scarce and purchasing sentiment hit rock bottom.

16 hours ago

Coal Surge Ignites Magnesium Market, Two-Month Consolidation Finally Breaks, Production Cuts and Destocking Signal Next Rally [SMM Analysis]

[SMM Magnesium Market Analysis: Coal Price Surge Ignites Magnesium Market, Two-Month Consolidation Finally Breaks Out, Production Cuts and Destocking Set Stage for Next Rally] Entering August, the magnesium market seemed to have fallen into a prolonged stalemate. The dividend from July production cuts faded, primary magnesium supply steadily recovered, while summer breaks outside China combined with the domestic die-casting off-season left downstream orders sparse and purchasing sentiment at a freezing point. With both supply and demand weak, magnesium prices were locked firmly in a narrow range of 15,800-15,950 yuan/mt, with little room to move either way. In mid-to-late August, prices even dipped to 15,750 yuan/mt at one point, with the market broadly taking a wait-and-see stance. When this bottom-level consolidation, already lasting two months, would see a turning point remained unknown.

16 hours ago

19 hours ago

Cost-Driven Magnesium Prices Shot Up, Weak Demand Makes Rally Unsustainable [SMM Magnesium Weekly Review]

[SMM Magnesium Weekly Review: Cost Push Drives Magnesium Prices Up, Weak Demand Limits Gains] This week, mainstream quotations for 99.90% magnesium ingot in major production areas stood at 16,050-16,150 yuan/mt, up 300 yuan/mt WoW, with FOB prices at $2,280-2,380/mt and an average of $2,330/mt. Magnesium ingot prices shot up during the week, driven by rising coal and ferrosilicon costs, coupled with some restocking at higher prices in foreign trade. However, the overall market remained characterized by strong supply and weak demand, with sluggish transactions at high prices and signs of a pullback emerging in the latter part of the week. Overseas demand has not shown any substantial recovery, with market activity dominated by tentative inquiries, limited actual order volumes, and evident buyer pressure for lower prices, keeping trading sluggish. Downstream magnesium powder and magnesium alloy prices followed the cost-driven increase in magnesium ingot, but end-use demand for magnesium powder remained weak, with some enterprises cutting production or suspending operations, exports constrained, and inventory levels rising. Spot inventory of magnesium alloy was ample, competition among peers was intense, and die-casting enterprises faced insufficient orders and declining operating rates, keeping processing fees under pressure. In the short term, cost support and weak demand are locked in a tug-of-war, and the upward momentum in magnesium prices is losing steam, with the market likely to return to consolidation. Going forward, close attention should be paid to the release of domestic and overseas orders.

19 hours ago