Raw Material Prices Stabilize with Demand Support, Magnesium Market Holds Up Well Overall [SMM Magnesium Morning Meeting Minutes]

Published: Jan 30, 2026 09:41

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[SMM Magnesium Morning Meeting Minutes: Stable Raw Material Prices and Demand Support Keep Magnesium Market Holding Up Well] Dolomite and ferrosilicon prices remain stable, magnesium ingot and other magnesium product quotations are raised, and the overall market is holding up well.

SMM January 30 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 5,850 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 for dolomite demand from the current high operating rates at primary magnesium plants, dolomite prices are expected to hold up well. The most-traded ferrosilicon futures contract, 2603, closed at 5,736 yuan yesterday, up 122 yuan. The futures market held up well yesterday. In the spot market, ferrosilicon supply remained stable, while downstream buyers maintained just-in-time procurement. Market trading activity was moderate, and ferrosilicon prices are expected to fluctuate rangebound.

Magnesium Ingot

Today, the mainstream transaction price for magnesium ingots in the Fugu area was 16,700 yuan/mt, up 150 yuan/mt from the previous working day; the Chinese FOB price was $2,360-2,410/mt.

Supply and Demand

Magnesium prices continued to hold up well yesterday, with mainstream quotations concentrated in the range of 16,600-16,700 yuan/mt. Supply side, primary magnesium smelters maintained firm quotations. Demand side, downstream buyers gradually entered the market for just-in-time stockpiling. Some transactions occurred at yesterday's high prices. Overall, downstream transaction follow-through was challenging, and upward momentum for magnesium prices was insufficient. Magnesium prices are expected to hold firm in the short term.

Magnesium Alloy

Today, the mainstream tax-included ex-factory price for magnesium alloy in China was 18,850-19,050 yuan/mt; the Chinese FOB price for magnesium alloy was $2,630-2,690/mt.

Supply and Demand

Magnesium alloy prices rose yesterday, tracking magnesium prices. Cost side, magnesium ingot prices rose slightly yesterday, with the benchmark price up 200 yuan/mt MoM from the day before. Other auxiliary material prices hovered at highs, with relatively small fluctuations. Supply-demand side, leading magnesium alloy producers maintained production schedules based on orders. Spot cargo in the market was relatively tight. The processing fee is expected to hold firm.

Magnesium Powder

Prices

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

Supply and Demand

The magnesium powder market operated steadily overall this week, with smooth execution of industry production schedules. Demand side, the domestic trade market maintained a purchasing-as-needed pattern. New order volumes in foreign trade were limited overall. Driven by the slight increase in raw material magnesium ingot prices since Tuesday, magnesium powder production costs rose correspondingly, leading to a mild increase in market quotations.

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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