Magnesium Price Rise Encounters Chill, Overseas Orders Sluggish Restrain Market Trend [SMM Magnesium Morning Meeting Minutes]

SMM January 22 Magnesium Morning Meeting Summary:

Magnesium Raw Material

Prices

The ex-factory price (excluding tax) for 1-3 cm dolomite (Wutai) was 108 yuan/mt, unchanged from the previous working day; the ex-factory price (excluding tax) for 2-4 cm dolomite (Wutai) was 128 yuan/mt, also unchanged from the previous working day. In Shaanxi, the mainstream ex-factory price for 75 ferrosilicon was 5,800 yuan/mt.

Supply and Demand

Yesterday, Wutai dolomite prices held steady. Recently, a leading Wutai dolomite manufacturer confirmed a production halt, reducing the supply of high-quality dolomite in the market. Considering the strong support for dolomite demand due to the high operating rates of primary magnesium producers, it is expected that dolomite prices will hold up well. The most-traded 2603 ferrosilicon futures contract closed at 5,610, up 52 yuan. In the spot market, ferrosilicon supply remained stable, but downstream purchasing enthusiasm was low, with inventory on a rising trend. It is expected that ferrosilicon prices will be under pressure.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingot in Fugu area was 16,300 yuan/mt, up 200 yuan/mt from the previous working day; China's FOB price was $2,300-2,360/mt.

Supply and Demand

Early yesterday, the magnesium market showed a slight rise, with traders' mainstream quotations remaining at 16,300 yuan/mt. However, overall sentiment among downstream buyers was weak, and the response to this price increase was mediocre, with limited follow-up purchases. In the afternoon, the market atmosphere weakened, and magnesium producers' quotation enthusiasm declined. In the overseas market, trading activity remained sluggish, with very few new orders. Affected by the continuous decline in magnesium prices, overseas downstream customers mainly inquired about prices and market conditions, showing little willingness to place actual orders, with a "rush to buy amid continuous price rise and hold back amid price downturn" mentality prevailing. Traders, holding some low-cost inventories from earlier, are currently focusing on executing existing orders, and are cautious about new purchases. Overall, the market is expected to maintain a fluctuate rangebound pattern.

Magnesium Alloy

Today, the mainstream ex-factory price (including tax) for magnesium alloy in China was 18,500-18,700 yuan/mt; the FOB price for Chinese magnesium alloy was $2,590-2,650/mt.

Supply and Demand

Yesterday, magnesium alloy prices held up well. On the supply-demand side, top-tier enterprises maintained stable operations, with a slight increase in production in Shaanxi, and tight spot supply. As the Chinese New Year approaches, orders from downstream die-casting and end-users have decreased, and magnesium alloy manufacturers have suspended expansion, maintaining a tight balance in the market. In the short term, magnesium ingot prices may fall further, dragging down the benchmark price, while A00 aluminum ingot fluctuating at highs will support processing fees to hold up well. Price fluctuations are expected to be limited before the Chinese New Year, and post-holiday attention should be paid to demand recovery and cost-side variables.

Magnesium Powder

Prices

Today, the mainstream ex-factory prices, including tax, for 20-80 mesh magnesium powder in China were 17,250-17,450 yuan/mt; the FOB price in China was $2,450-2,500/mt.

Supply-Demand

Recently, magnesium powder prices continued to be affected by the decline in raw material prices, showing an overall downward trend; the decline paused mid-week and then stabilized. Current market transactions mainly rely on the execution of previous orders, with overall low enthusiasm for purchasing raw materials. Looking back at export performance in 2025, the magnesium powder export market experienced some contraction, and overall demand still awaits recovery. Magnesium powder prices are expected to operate stably in 2026, with limited short-term upside drivers.