The sentiment of rushing to buy amid continuous price rise and holding back amid price downturn dominates, and the magnesium ingot market is expected to remain weak [SMM Magnesium Morning Meeting Minutes]

Published: Jan 16, 2026 09:26

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[SMM Magnesium Morning Meeting Minutes: Sentiment of Rushing to Buy Amid Continuous Price Rise and Holding Back Amid Price Downturn Dominates, Magnesium Ingot Market Expected to Remain Weak] Magnesium industry chain varieties are stable with a slight strength, the supply-demand tight balance continues, raw material support is strong, and divergence between domestic and foreign trade is evident.

SMM January 16 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory, tax-excluded price for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat from the previous working day; the ex-factory, tax-excluded price 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 5,800 yuan/mt.

Supply and Demand

Recently, Wutai dolomite prices held steady. A leading Wutai dolomite producer confirmed a production halt, reducing the supply of high-quality dolomite in the market. Considering the strong demand support from the high operating rates of primary magnesium producers, dolomite prices are expected to hold up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,610 yuan on the previous working day, down 72 yuan. In the spot market, ferrosilicon producers held firm on quotations, while downstream buyers showed a strong wait-and-see sentiment, resulting in sluggish market transactions. Ferrosilicon prices are expected to remain in the doldrums.

Magnesium Ingot

Today, mainstream quotations for magnesium ingots in Fugu were chaotic. Mainstream transaction prices are expected to be 16,500-16,600 yuan/mt, down 100 yuan/mt from the previous working day; the Chinese FOB price was quoted at $2,360-2,430/mt.

Supply and Demand

Trading activity in the magnesium market was sluggish yesterday. On the supply side, leading producers in the main production area continued to hold firm on quotations, while some producers sold at lower prices, causing the center of mainstream transaction prices to continue declining and increasing the availability of low-priced material. On the demand side, influenced by the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, both domestic and international procurement enthusiasm was low, with market transactions mainly consisting of just-in-time procurement. Overall, the supply-demand stalemate weakened, and bargaining power shifted toward buyers. Magnesium prices are expected to remain under pressure.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,800-19,000 yuan/mt; the Chinese FOB price for magnesium alloy was $2,650-2,710/mt.

Supply and Demand

Magnesium alloy prices were under pressure yesterday. On the supply side, the operating rate of magnesium alloy enterprises remained stable, but leading producers had order schedules extended to February, keeping spot resource supply tight. On the demand side, downstream transactions gradually followed up. Comprehensive analysis suggests that, amid expectations of a supply-demand gap and cost support from high aluminum prices for auxiliary materials, 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 17,800-18,000 yuan/mt; the Chinese FOB price was $2,530-2,580/mt.

Supply and Demand

Magnesium powder market trends were stable this week. Influenced by the pullback in raw material prices, magnesium powder prices also showed signs of softening. Industry operating rates have remained stable for three consecutive months, with enterprises generally continuing to adopt a sales-based production strategy. Some producers have recently entered the market to purchase raw materials to replenish inventory. Demand side, overall demand is still expected to be dominated by rigid demand, lacking significant growth momentum 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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