Magnesium Market Continues in the Doldrums, Downstream Purchases Remain Cautious [SMM Magnesium Morning Meeting Minutes]

Published: Nov 24, 2025 09:41

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[SMM Magnesium Morning Meeting Minutes: Magnesium Market Continues in the Doldrums, Downstream Procurement Remains Cautious] Last week, the magnesium market overall remained in the doldrums. On the raw material side, dolomite prices held steady, with demand support in the main production areas remaining solid; ferrosilicon futures fluctuated rangebound, the spot market supply was ample, and with losses, a bottom consolidation is expected in the short term. Magnesium ingot prices were slightly lowered by 50 yuan/mt, underlying tensions persisted amidst the market stalemate, downstream procurement sentiment showed a slight rebound, some overseas customers began watching for 2026 orders, but overall transactions remained sluggish. Magnesium alloy prices held steady, supply gradually loosened but production schedules at top-tier enterprises were orderly, demand from two-wheeled electric vehicles provided support, and prices are expected to remain under pressure in the short term, following magnesium ingot trends. The magnesium powder market continued to decline, insufficient cost support and scarce new orders suppressed the market, and just-in-time procurement failed to alter the weak trend. Overall, the magnesium market is expected to remain primarily in the doldrums in the short term, with market sentiment bearish and downstream procurement staying cautious.

SMM November 24 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory price, excluding tax, for 2-4 cm dolomite (Wutai) was 128 yuan/mt, flat from the previous working day; the mainstream ex-factory price for 75 ferrosilicon in Shaanxi was 5,700-5,800 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. Magnesium producers in the main production areas maintained stable production, with continuous release of rigid demand for dolomite providing strong support. Dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,472, down 70. Ferrosilicon futures fluctuated rangebound. In the spot market, the number of ferrosilicon smelters halting production increased, but overall ferrosilicon supply remained relatively ample. Demand side, purchasing as needed continued, with downstream customers maintaining rational purchase willingness. Considering current losses for ferrosilicon producers, ferrosilicon prices are expected to consolidate at the bottom in the short term.

Magnesium Ingot

Prices

Today, mainstream quotations for magnesium ingots in the Fugu area were 15,950-16,050 yuan/mt, down 50 yuan/mt from the previous working day; the China FOB price was $2,240-2,340/mt.

Supply and Demand

Last week, magnesium prices consolidated at the bottom, with market stalemate intensifying, yet underlying currents were active. Downstream purchase sentiment rebounded slightly, with some overseas clients watching for market lows to lock in orders early for 2026 demand. Currently, trader offers were generally steady, with a cautious attitude towards sales. Overall, downstream order procurement volume remained limited, and the market widely adopted a wait-and-see attitude, expecting prices to fall further.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,900-18,050 yuan/mt; the China FOB price for magnesium alloy was $2,500-2,570/mt.

Supply and Demand

Recently, magnesium alloy prices held steady. Supply side, magnesium alloy supply gradually eased, but leading magnesium alloy producers maintained orderly production schedules according to order pace. Demand side, new demand from the two-wheeled EV sector continued to be released, providing strong support for the magnesium alloy market. However, considering the pressure on raw material magnesium ingot prices and the shift in the magnesium alloy market's supply-demand pattern, magnesium alloy prices are expected to be under pressure in the short term.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,200-17,400 yuan/mt; the China FOB price was $2,420-2,480/mt.

Supply-Demand

The price of magnesium powder continued to decline under the dual pressures of weak cost support and scarce new orders. Although a few manufacturers saw a phased rebound in procurement volume, this was mostly concentrated in rigid demand and long-term contract deliveries, and has not yet translated into momentum for a broader market recovery. Bearish sentiment still dominates the trading atmosphere, and the weak trend is expected to persist in the short term.

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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