The magnesium market exhibits a stable domestic and weak international pattern, with differentiated pre-holiday demand supporting prices. [SMM Magnesium Morning Meeting Minutes]

Published: Dec 25, 2025 09:32

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[SMM Magnesium Morning Conference Minutes: Domestic Magnesium Market Remains Stable While Overseas Demand Weakens, Pre-Holiday Demand Divergence Supports Prices] On December 25, the magnesium market overall exhibited stable domestic demand but weak overseas demand. Raw material side, dolomite prices continued to hold up well; the ferrosilicon fundamentals improved but upward momentum was limited due to the off-season. The magnesium ingot market showed clear sentiment to hold prices firm, with mainstream quotations maintained at 15,650-15,750 yuan/mt. Trading was mostly concentrated at the high-end of the range, and trading volume was moderate. However, foreign trade demand remained sluggish affected by the Christmas holiday. The supply-demand pattern in the magnesium alloy market remained tight, with top-tier enterprises' production schedules booked until February next year. Processing fees were raised, but downstream acceptance was limited. The magnesium powder market saw overall steady activity; domestic demand mainly involved purchasing as needed, while foreign trade orders were largely locked in, and enterprises were relatively active in stockpiling. Overall, the magnesium market showed a divergence between domestic and overseas markets before the holiday, with prices generally holding steady.

SMM December 25 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; for 2-4 cm dolomite (Wutai) it was 128 yuan/mt, also flat. In Shaanxi, the mainstream ex-factory price for 75 ferrosilicon was 5,600-5,650 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. Production order at magnesium plants in the main production area remained stable, with sustained release of rigid demand for dolomite providing strong support. Dolomite prices were expected to continue holding up well. In the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,656, down 4. Ferrosilicon futures fluctuated rangebound. In the spot market, ferrosilicon supply decreased slightly, leading to some improvement in its fundamentals. However, considering the ongoing industry off-season, short-term upward momentum in the ferrosilicon market was expected to be limited.

Magnesium Ingot

Prices

Today, mainstream quotations for magnesium ingots in the Fugu area were 15,650-15,750 yuan/mt, flat from the previous working day. The Chinese FOB price was $2,200-2,280/mt.

Supply and Demand

Yesterday, mainstream transaction prices were 15,550-15,650 yuan/mt, with most transactions concentrated at the high-end of the price range. Magnesium plants exhibited strong sentiment to hold prices firm, collectively raising their quotations, which triggered a market mentality to rush to buy amid continuous price rise and hold back amid price downturn. Although actual transaction prices did not shift upwards correspondingly, trading volume today was moderate. Recently, the foreign trade market experienced sluggish demand due to the Christmas holiday, with a lack of new orders, keeping overall market demand weak. Prices were expected to remain stable this week.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 17,750-17,950 yuan/mt. The Chinese FOB price for magnesium alloy was $2,470-2,520/mt.

Supply and Demand

Yesterday, domestic magnesium alloy market prices showed a trend of holding up well. The supply-demand pattern remained tight, with leading magnesium alloy producers having their production schedules booked until February next year, indicating significant undersupply. Supported by this, leading manufacturers recently raised their alloy processing fee quotations again. However, downstream die-casting plants and vehicle manufacturers had limited acceptance of the new prices, suggesting the pace of implementing the new magnesium alloy prices might slow down in the short term.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 16,850-17,050 yuan/mt. The Chinese FOB price was $2,370-2,430/mt.

Supply and Demand

Trading in the magnesium powder market was generally steady yesterday. Domestic demand was primarily characterized by purchasing as needed, while foreign trade orders were largely locked in. Most magnesium powder producers were currently in a stockpiling state. Suppliers generally schedule production based on demand, and recent procurement of raw materials has been relatively active. It is expected that the price of magnesium powder will continue to be supported by raw material costs, maintaining overall stable operation.

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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