Magnesium Ingot Domestic Trade Strengthens, FOB Export Quotes Remain Firm with Limited Transactions [SMM Magnesium Weekly Review]

1 Market Review

1 Dolomite

This week, the ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat WoW; the price for 2-4 cm dolomite (Wutai) was 138 yuan/mt, flat WoW.

The domestic dolomite market overall held steady this week. On the supply side, leading producers in Wutai continued to suspend production and sales, leading to tightening supply of high-quality dolomite in the region. However, other production areas promptly ramped up output to fill the local supply gap, preventing a nationwide tight supply situation. On the demand side, primary magnesium enterprises in the Shaanxi-Shanxi-Inner Mongolia region maintained stable operations, releasing steady rigid demand for dolomite. Most producers maintained ample inventory, supporting stable market conditions. Considering the performance of both supply and demand, the overall stable tone of the national dolomite market remained unchanged.

1.2.1 Magnesium Ingot (Fugu, Shenmu - Main Production Areas)

Magnesium prices held up well this week. As of press time, the mainstream transaction price for 99.90% magnesium ingot in the main production areas rose to 16,600 yuan/mt, an increase of 350 yuan/mt WoW.

Magnesium prices held up well this week. Looking back, at the start of the week, primary magnesium smelters held firm on their offers, leading to a strong stalemate in the market and sluggish trading. Subsequently, influenced by a cold wave, the main production areas were expected to face rain and snow in the latter half of the week. Some downstream customers concentrated their purchasing mid-week, leading to a noticeable increase in market inquiries. Primary magnesium smelters raised their offers, downstream customers followed up promptly, and magnesium prices rose steadily.

1.2.2 Magnesium Ingot (Tianjin Port - FOB China)

This week, the FOB China price was quoted at $2,360-2,410/mt, with an average price of $2,385/mt. FOB quotes remained firm in sync with ex-factory prices this week.

Inquiries from the overseas market increased this week, mostly for Q2 orders. Actual trading volume consisted mainly of scattered orders, with transaction prices concentrated in the range of $2,320-2,340/mt. As ex-factory prices from magnesium plants gradually increased towards the mid-to-late week, the foreign trade market gradually became dominated by offers, with downstream inquiries adopting a wait-and-see stance.

1.3 Magnesium Powder

This week, the mainstream tax-included ex-factory price in China for 20-80 mesh magnesium powder was 17,800-18,000 yuan/mt; the FOB China price was $2,520-2,570/mt.

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

1.4 Magnesium Alloy

This week, mainstream tax-inclusive ex-factory prices for Chinese magnesium powder (20-80 mesh) stood at 17,800-18,000 yuan/mt; FOB China prices were $2,520-2,570/mt.

The magnesium alloy market saw benchmark prices rise while processing fees held steady. Cost side, the weekly average price of primary magnesium ingot increased by 350 yuan/mt. Auxiliary material side, A00 aluminum ingot prices fluctuated at highs, and magnesium alloy processing fees remained firm. Supply and demand side, magnesium alloy producers operated steadily. As the year-end approaches, some die-casting and end-user plants are nearing the Chinese New Year break, leading to a slight reduction in orders. Overall, the magnesium alloy market is expected to maintain a tight balance, with processing fees staying firm.

2 Weekly Summary

Domestic magnesium industry chain products showed divergent trends this week. Dolomite market remained stable, while most magnesium product prices rose in line with raw material costs. Dolomite prices in Wutai region held steady; although the suspension of leading producers tightened supply of high-grade material, other producing areas filled the gap promptly. Meanwhile, primary magnesium enterprises in Shanxi, Shaanxi, and Inner Mongolia operated steadily, with rigid demand being released orderly and inventories remaining ample, keeping the overall market stable. 9990 magnesium ingot prices in major producing regions rose firmly. The market was stagnant with sluggish transactions early in the week, but expectations of rain and snow prompted concentrated procurement from downstream users. After producers raised prices, transactions improved steadily, and mainstream transaction prices increased by 350 yuan WoW to 16,600 yuan/mt. FOB offers for magnesium ingot at Tianjin port remained firm, with an increase in forward inquiries but scattered actual transactions and limited follow-through. The magnesium powder market operated steadily, with quotes rising mildly as costs increased following the rise in magnesium ingot prices. Magnesium alloy benchmark prices followed magnesium ingot higher, while processing fees held steady. Year-end end-user orders decreased, and the market maintained a tight supply-demand balance.