Magnesium Ingot and Raw Material Prices Stable with Weakening Trend, Tight Magnesium Alloy Supply Supports Processing Fee [SMM Magnesium Morning Meeting Summary]

Published: Jan 15, 2026 09:55

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[SMM Magnesium Morning Conference Minutes: Magnesium Ingot and Raw Material Prices Stable with Weakening Trend, Tight Magnesium Alloy Supply Supports Processing Fee] On January 15, raw material side, dolomite supply in Wutai area tightened due to the suspension of production by leading producers, and prices are expected to hold up well supported by demand; ferrosilicon futures weakened, spot transactions were sluggish, and prices remained weak. Magnesium ingot market transactions were weak, mainstream quotations in Fugu area were slightly lowered, and domestic and export demand was stable but lacked strong support. In the magnesium alloy market, as leading producers have orders scheduled until February, spot supply remains tight, and processing fees continue to hold up well supported by rising aluminum prices and cost support. The magnesium powder market remained generally stable, a pullback in raw material prices led to a slight softening of product prices, enterprises mainly produce based on sales, demand side remains largely rigid, with no clear growth momentum visible. Overall, the market lacks a unified upward driver in the short term, and structural divergence is expected to continue.

SMM January 15 Magnesium Morning Meeting Minutes:

Magnesium Raw Materials

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. Recently, a leading dolomite producer in Wutai confirmed a production halt, reducing the supply of high-quality dolomite in the market. Considering the strong support for dolomite demand from the current high operating rates of primary magnesium producers, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, si2603, closed at 5,690 yuan, down 14 yuan. In the spot market, ferrosilicon producers held their quotations firm, while downstream buyers exhibited a strong wait-and-see sentiment, resulting in sluggish market transactions. Ferrosilicon prices are expected to remain in the doldrums.

Magnesium Ingot

Prices

Today, the mainstream quotation for magnesium ingots in the Fugu area was 16,700-16,800 yuan/mt, down 50 yuan/mt from the previous working day. The Chinese FOB price was $2,370-2,440/mt.

Supply and Demand

Magnesium market transactions were weak yesterday, with actual transaction prices mostly concentrated at the low-end of the quotation range, and traders offered at lower prices. Overall demand remained stable, but new export orders were relatively limited. On the supply side, leading magnesium producers maintained firm quotations, but the willingness to hold prices firm among other small and medium-sized producers and those in other regions weakened somewhat. The market overall lacked solid supply-demand support, leading to slightly weaker prices.

Magnesium Alloy

Prices

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,900-19,000 yuan/mt. The Chinese FOB price for magnesium alloy was $2,670-2,730/mt.

Supply and Demand

Magnesium alloy prices continued to hold steady yesterday. On the supply side, the operating rate of magnesium alloy enterprises remained stable, but order schedules for leading producers have been extended into February, and the supply of spot resources in the market continued to be tight. On the demand side, downstream transactions gradually followed up. Comprehensive analysis suggests that, under the expectation of a supply-demand gap and cost support from high and rising prices of the auxiliary material aluminum, magnesium alloy processing fees are expected to continue holding up well.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,900-18,100 yuan/mt. The Chinese FOB price was $2,540-2,590/mt.

Supply-Demand

The magnesium powder market remained generally stable, with product prices slightly softening due to a pullback in raw material prices. The industry's operating rate has remained flat for three consecutive months, and enterprises have generally continued to produce based on sales. Some manufacturers have recently entered the market to purchase raw materials to replenish inventory. Demand side, overall demand is still expected to be dominated by rigid needs, with no clear growth drivers emerging.

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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