Magnesium Metal Fluctuates Rangebound and Rebounds, Showing Resilience; Magnesium Prices May Continue to Fluctuate Rangebound [SMM Magnesium Morning Meeting Minutes]

SMM January 26 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

Last week, Wutai dolomite prices held steady. Recently, leading dolomite producers in Wutai confirmed production halts, reducing the supply of high-quality dolomite in the market. Considering the current high operating rates of primary magnesium plants provide strong support for dolomite demand, dolomite prices are expected to hold up well. In the previous working day, the most-traded ferrosilicon futures contract, 2603, closed at 5,652 yuan, up 56 yuan, an increase of 1.00%. In the spot market, ferrosilicon supply remained stable, downstream users maintained just-in-time procurement, and market trading activity was generally moderate. Ferrosilicon prices are expected to fluctuate rangebound.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingot in the Fugu area was 16,300 yuan/mt, flat from the previous working day; the China FOB price was $2,300-2,380/mt.

Supply and Demand

Last week, magnesium prices showed a pattern of initial strength followed by weakness, fluctuating within a narrow range. Reviewing the week, the magnesium market continued the previous week's pattern of persistent slight declines at the start of the week, with prices falling at a rate of 150 yuan/mt per day. As prices fell below 16,500 yuan/mt, market inquiries increased slightly, and large orders were occasionally concluded, leading to a noticeable reduction in inventory for some producers. By mid-week, magnesium prices once again rose above the 16,000 yuan/mt mark, market procurement enthusiasm increased significantly, and prices consequently bottomed out, with the domestic price for 99.90% magnesium ingot rising to 16,000 yuan/mt. Overall, supply was stable last week, increased downstream procurement volume led to a decline in producer inventory, and supported by producers' reluctance to sell, magnesium prices rebounded slightly.

Magnesium Alloy

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

Supply and Demand

Last week, the magnesium alloy market exhibited a pattern of a declining benchmark price but firm alloy processing fees. Cost side, the weekly average price of the main raw material, magnesium ingot, decreased slightly last week, down 300 yuan/mt WoW. Auxiliary materials side, the price of A00 aluminum ingot occasionally fell below 24,000 yuan/mt, narrowing auxiliary material costs, but A00 aluminum prices still fluctuated at highs, and processing fees saw no significant adjustment. Supply-demand side, magnesium alloy producers operated stably last week. Currently, approaching the year-end, some die-casting plants and end-users are nearing the Chinese New Year break, leading to a slight reduction in orders. Affected by this, expansion plans at magnesium alloy plants were paused. Overall, the magnesium alloy market is expected to maintain a tight supply-demand balance, and magnesium alloy processing fees.

Magnesium Powder

Prices

Today, the mainstream ex-factory prices, including taxes, for 20-80 mesh magnesium powder in China were 17,450-17,650 yuan/mt; the FOB price in China was $2,470-2,530/mt.

Supply-Demand

Last week, magnesium powder prices continued to be affected by the decline in raw material prices, showing an overall weak and stable pattern. Although the market decline slowed down and stabilized mid-week, downward pressure persisted. Current magnesium powder transactions mainly rely on the execution of previous orders, and industry enthusiasm for purchasing raw materials is generally low. Looking back at the export performance in 2025, the magnesium powder export market experienced a certain degree of contraction, and overall demand still needs to recover. It is expected that magnesium powder prices will continue to be suppressed by the cost side this week, and downward pressure will be difficult to fully resolve.