The magnesium market remains stable with a strong wait-and-see sentiment; both domestic and overseas demand cool down simultaneously before the holiday [SMM Magnesium Morning Meeting Summary]

Published: Dec 17, 2025 09:31

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[SMM Magnesium Morning Conference Summary: Magnesium Market Holds Steady with Strong Wait-and-See Sentiment, Both Domestic and Overseas Demand Cool Down Ahead of Holiday] On December 17, the magnesium raw material market showed divergence. The price of dolomite continued to hold up well, supported by rigid demand, while ferrosilicon, due to production halts and maintenance by some manufacturers facing losses, presented a situation of weak supply and demand, bottoming out and consolidating. Overall trading in the magnesium ingot market was sluggish, with Fugu transaction prices holding steady at 15,450-15,550 yuan/mt. Although there were efforts to hold prices firm in the afternoon, transactions remained weak. Soft domestic demand, coupled with the approaching overseas Christmas holiday leading to weaker external demand, has market expectations for the market to remain in the doldrums. Magnesium alloy prices were relatively firm, primarily supported by end-use demand leading to scheduled production, but varying orders among manufacturers resulted in a widening transaction range. Magnesium powder prices stabilized along with raw materials, with the market dominated by rigid demand transactions. Enterprises continued their sales-based production strategy, resulting in overall steady trading. It is expected that the weak consolidation trend will continue in the short term.

SMM December 17 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 5,600-5,650 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. Magnesium plants in the main production area maintained stable operations, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices are expected to hold up well. For the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,482, down 56. In the spot market, some ferrosilicon smelters recently underwent maintenance shutdowns due to losses, leading to a slight reduction in market supply. However, considering the current sluggish demand, the ferrosilicon market faced weakness in both supply and demand. Ferrosilicon prices are expected to consolidate at low levels.

Magnesium Ingot

Prices

Today, the mainstream transaction price for magnesium ingots in the Fugu area was 15,450-15,550 yuan/mt, flat from the previous working day. The Chinese FOB price was quoted at $2,200-2,250/mt.

Supply and Demand

Overall trading activity in the magnesium ingot market was sluggish yesterday. The transaction price range in the morning was 15,450-15,550 yuan/mt. In the afternoon, as smelters showed stronger willingness to hold prices firm, offers edged up to 15,500-15,700 yuan/mt, but actual transactions remained sluggish. Domestic trade demand continued to be weak. For foreign trade, overseas demand weakened this week as the Christmas holiday approached, shifting the market trend to a weaker tone. The magnesium market is expected to be in the doldrums this week.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,450-17,650 yuan/mt. The Chinese FOB price for magnesium alloy was $2,460-2,500/mt.

Supply and Demand

Magnesium alloy prices held steady recently. On the raw material side, sentiment to hold back sales was relatively strong in the magnesium ingot market, and magnesium ingot prices are expected to hold firm. Regarding the magnesium alloy market's supply and demand, a previous increase in end-use demand led to a supply-demand imbalance in the magnesium alloy market. Most alloy plants were busy fulfilling existing orders. Affected by this, magnesium alloy prices held up well. However, due to varying order situations among alloy plants, the transaction range for magnesium alloy widened.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 16,650-16,850 yuan/mt. The Chinese FOB price was $2,370-2,400/mt.

Supply and Demand

Magnesium powder prices held steady yesterday, moving in sync with the stabilization of the raw material magnesium ingot. Low-priced spot cargo was limited in the market. Current transactions are primarily supported by rigid demand, with most producers continuing to adopt a conservative strategy of producing based on sales. Downstream procurement remains focused on essential orders, and overall market transactions remain stable. Magnesium powder prices are expected to continue fluctuating in line with raw material market trends, maintaining a weak consolidation pattern.

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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