Magnesium Market Prices Generally Decline, Wait-and-See Sentiment on Demand Side Suppresses Market Rebound [SMM Magnesium Morning Meeting Minutes]

Published: Jan 21, 2026 09:45

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[SMM Magnesium Morning Conference Summary: Magnesium Market Prices Generally Decline, Wait-and-See Sentiment on Demand Side Suppresses Market Rebound] On January 21, dolomite supply tightened due to production halts at leading enterprises, with prices expected to hold up well; ferrosilicon market transactions were sluggish, continuing its weak trend. Magnesium ingot prices continued to trend lower, with Fugu offers adjusted down to 16,200 yuan/mt, and FOB offers at $2,300-2,360/mt. Weak demand and a wait-and-see stance in foreign trade led to weak stabilization in the market. The magnesium alloy benchmark price edged down, but processing fees held up well, supported by auxiliary material costs. Magnesium powder prices continued to decline, following the pullback in raw materials. Enterprises restocked based on demand, with the demand side primarily driven by rigid needs and lacking growth momentum. Overall, the market exhibited a weak consolidation pattern, characterized by a tug-of-war between soft demand and cost support.

SMM January 21 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 5,800 yuan/mt.

Supply and Demand

Wutai dolomite prices held steady yesterday. Recently, a top-tier dolomite producer in Wutai confirmed a production halt, reducing the supply of high-quality dolomite in the market. Considering the strong demand support 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, 2603, closed at 5,552 yuan, down 4 yuan. In the spot market, ferrosilicon supply remained stable, with producers holding prices firm. However, downstream wait-and-see sentiment was strong, resulting in sluggish market activity. Ferrosilicon prices are expected to remain in the doldrums.

Magnesium Ingot

Prices

Today, the mainstream transaction price for magnesium ingots in the Fugu area was 16,200 yuan/mt, down 150 yuan/mt from the previous working day; the Chinese FOB price was $2,300-2,360/mt.

Supply and Demand

Magnesium prices continued their weak trend yesterday, with some low-priced spot supplies being released in the market. Recent overall demand performance has been sluggish, making it difficult for magnesium plants' intentions to hold prices firm to gain effective support. Wait-and-see sentiment prevailed in the foreign trade market, with some downstream end-user orders not being urgent, and a general expectation for further price corrections. Cost side, the industry's average production cost rose in December, making it difficult for magnesium prices to quickly fall to last month's lows in the short term. The current market overall shows a weak stabilization trend.

Magnesium Alloy

Prices

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

Supply and Demand

Magnesium alloy prices continued their downward trend yesterday. Cost side, magnesium ingot prices weakened, the magnesium alloy benchmark price edged down, while auxiliary material costs were supported by high A00 aluminum prices, leading to a slight rise in magnesium alloy processing fees at the beginning of the month. Supply-demand side, operations at top-tier enterprises were stable, production in Shaanxi increased slightly, and spot supply was relatively tight. The magnesium alloy benchmark price is expected to continue edging down, while processing fees are expected to hold up well.

Magnesium Powder

Prices

Today, the mainstream tax-included ex-factory price for 20-80 mesh magnesium powder in China was 17,350-17,550 yuan/mt; the Chinese FOB price was $2,470-2,510/mt.

Supply-Demand

In the magnesium powder market, prices continued to fall, affected by the pullback in upstream raw material prices. Some producers have started purchasing raw materials to replenish inventory. Demand side, new orders are currently limited, and overall demand is expected to remain primarily rigid. The market lacks 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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