Intensified Tug-of-War Between Sellers and Buyers in the Magnesium Market, Magnesium Ingot Decline Unabated, Magnesium Alloy Diverges in Operation [SMM Magnesium Morning Meeting Minutes]

Published: Jan 20, 2026 09:52

Save

[SMM Magnesium Morning Meeting Minutes: Intensified Tug-of-War Between Sellers and Buyers in the Magnesium Market, Magnesium Ingot Decline Hard to Stop, Magnesium Alloy Diverges in Operation] Magnesium industry chain product prices remain stable but weak, small and medium magnesium plants reduce prices to sell, magnesium ingot prices accelerate downward, downstream mainly makes just-in-time procurement.

SMM January 20 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 5,800 yuan/mt.

Supply and Demand

Wutai dolomite prices held steady yesterday. Recently, leading dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the strong support from high operating rates at primary magnesium plants for dolomite demand, dolomite prices are expected to hold up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,548 yuan yesterday, down 44 yuan. In the spot market, ferrosilicon supply remained stable, with producers holding firm on offers. Downstream buyers exhibited strong wait-and-see sentiment, resulting in sluggish market transactions. Ferrosilicon prices are expected to remain in the doldrums.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingot in the Fugu area is expected to be 16,200 yuan/mt, down 150 yuan/mt from the previous working day; the Chinese FOB price was quoted at $2,320-2,380/mt.

Supply and Demand

The decline in magnesium prices accelerated yesterday. Although leading producers held firm on offers with low willingness to sell, small and medium-sized primary magnesium smelters reduced prices to stimulate transactions and expedite sales. The mainstream transaction price fell to 16,100-16,200 yuan/mt yesterday, with market prices declining rapidly. Influenced by the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, downstream buyers mainly made just-in-time procurement, and market transactions remained limited to essential demand.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China is 18,550-18,750 yuan/mt; the Chinese FOB price for magnesium alloy is $2,610-2,660/mt.

Supply and Demand

Magnesium alloy prices held steady yesterday. Specifically, cost side, the price of the raw material magnesium ingot was in the doldrums, leading to a gradual decline in the magnesium alloy benchmark price. However, A00 aluminum prices fluctuating at highs pushed up auxiliary material costs, resulting in a slight rise in the transaction price for magnesium alloy processing fees at the beginning of the month. Supply-demand side, the operating rate at leading magnesium alloy enterprises remained stable, and magnesium alloy production in Shaanxi increased slightly. However, spot supply in the market remained tight. Magnesium alloy prices are subsequently expected to show a trend of a gradually declining benchmark price while processing fees hold up well.

Magnesium Powder

Price

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China is 17,500-17,700 yuan/mt; the Chinese FOB price is $2,490-2,530/mt.

Supply and Demand

The magnesium powder market overall held steady yesterday, but influenced by the price correction of upstream raw materials, magnesium powder prices continued to fall. Some producers have started purchasing raw materials to replenish inventory. Demand side, current new orders are limited, and overall demand is expected to remain predominantly rigid, with a lack of 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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

[SMM Analysis] Tungsten Market Shifts to High-Level Shock; Sentiment Turns Cautious Amid Intensified Supply-Demand Game

SMM March 13: This week, China’s domestic tungsten market exhibited high-level oscillations with intensified supply-demand competition. Multiple mines put products up for auction during the week, but transactions were bleak.As of March 13, tungsten prices remained largely stable, yet market sentiment became extremely divided.

17 hours ago

Mar 13, 2026 17:49

Titanium Market Structure Becomes Clearer: Upstream Consolidates at Weak Levels, Midstream and Downstream Strength Expected [SMM Titanium Weekly Review]

[SMM Titanium Weekly Review: Titanium Dioxide Showed Signs of Recovery; Diverging Strength Across the Titanium Industry Chain Market This Week] This week, the titanium industry chain in China showed pronounced structural divergence, with the tug-of-war between sellers and buyers across upstream and downstream segments intensifying and cost pass-through facing obstacles. Overall, the sector was characterized by a combination of weak recovery and localized strong support. Trading in upstream titanium ore and titanium slag was sluggish. Downstream processing enterprises tightly controlled costs, with procurement consistently maintained at a pace driven by rigid demand. Coupled with inventory at high levels across the industry, the raw material end remained under pressure, enterprises’ willingness to operate stayed weak, capacity release was constrained, and the supply-demand imbalance continued to stand out. In the midstream titanium dioxide segment, pressure from elevated costs of raw materials and energy sharply increased production-side strain. Enterprises held prices firm and showed a strong willingness to sell, and while domestic trade demand did not see a noticeable increase in volume—relying only on rigid-demand support—overseas markets still demonstrated a certain degree of resilience, leaving the overall market running relatively strong. The downstream sponge titanium and titanium products segments performed impressively: sponge titanium inventories remained low, and, together with robust downstream restocking demand, top-tier enterprises proactively adjusted prices, with enterprises showing strong confidence in holding prices firm. The titanium products market saw stable supply and demand: the supply-side operating rate was steady, while demand-side differentiation was evident. Civilian applications were mainly driven by rigid-demand restocking, while orders in high-end fields such as aerospace and military industries were steady. The market recovered steadily, and differences in the pace across segments of the industry chain also set the tone for subsequent market dynamics.

Mar 13, 2026 17:49

Mar 13, 2026 13:52

Manganese-based Battery Materials: Differentiated Trends, Cost-Supported Stability

This week, China’s domestic manganese-based battery materials market has shown a differentiated operation trend. The price of battery-grade manganese tetroxide has slightly declined, the price of electrolytic manganese dioxide has slightly increased, and lithium manganate has maintained a weak balance of supply and demand.

Mar 13, 2026 13:52