Snowfall Stockpiling Boosts Short-Term Sentiment, While Export Transactions Remain Sluggish [SMM Magnesium Morning Meeting Minutes]

Published: Feb 2, 2026 09:35

Save

[SMM Magnesium Morning Session Minutes: Rain and Snow Stockpiling Boosts Short-Term Sentiment, Export Transactions Remain Sluggish] February 2, raw material side: dolomite supply tightens as leading producers halt production, prices are expected to be firm; ferrosilicon supply and demand remain stable, with market focus on the next round of steel mill pricing. Magnesium ingot side, domestic mainstream quotations hold steady at 16,600 yuan/mt, influenced by expectations of rain and snow in major production areas, some downstream users concentrated stockpiling mid-week, pushing up inquiries; however, in the foreign trade market, although inquiries increased, actual transactions were mainly sporadic orders at $2,320-2,340/mt, indicating limited demand support. Magnesium alloy benchmark prices rose with raw materials, processing fees remained firm. Magnesium powder market operated steadily, with costs rising slightly driving quotations to raise mildly. Overall, the market shows a weak expectation with domestic trade sentiment boosted but foreign trade substantive demand insufficient.

SMM Magnesium Morning Meeting Minutes for February 2:

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 5,850 yuan/mt.

Supply and Demand

Dolomite prices in Wutai 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 demand support from the current high operating rates of primary magnesium producers, dolomite prices are expected to hold up well. For ferrosilicon, the most-traded ferrosilicon futures contract 2603 closed at 5,660 yuan, down 52 yuan from the previous session. The futures market held up well yesterday. In the spot market, ferrosilicon supply remained stable, while downstream users maintained just-in-time procurement. Overall market activity was moderate. Future price trends will depend on the next round of steel mill pricing.

Magnesium Ingot

Prices

Today, the mainstream transaction price for magnesium ingot in the Fugu area was 16,600 yuan/mt, flat from the previous working day; the China FOB price was $2,360-2,410/mt.

Supply and Demand

Last week, magnesium prices continued to hold up well, with mainstream quotations concentrated in the range of 16,600-17,000 yuan/mt. Due to the cold air, the market anticipated rain and snow in the main production area later in the week, which could disrupt logistics. This prompted some downstream customers to engage in concentrated stockpiling mid-week, significantly increasing market inquiry activity. In foreign trade, inquiries increased, mostly for forward orders targeting Q2. However, actual transactions were still dominated by scattered orders, with transaction prices generally concentrated in the range of $2,320-2,340/mt. Overall, the magnesium market is expected to show a slightly weaker trend, as demand support remains insufficient.

Magnesium Alloy

Prices

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

Supply and Demand

Last week, the magnesium alloy market exhibited a pattern of rising benchmark prices and stable processing fees. Cost side, the weekly average price of the main raw material, magnesium ingot, increased by 350 yuan/mt this week. Auxiliary materials side, the price of A00 aluminum ingot fluctuated at highs, while magnesium alloy processing fees remained firm. Supply-demand side, magnesium alloy producers operated stably this week. As the year-end approaches, some die-casting manufacturers and end-users 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 remaining firm.

Magnesium Powder

Price

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

Supply and Demand

Last week, the magnesium powder market operated steadily overall, with smooth execution of the industry's production schedule. Demand side, the domestic trade market maintained a purchasing-as-needed pattern, while new foreign trade orders were generally limited. Driven by the slight increase in the price of raw material magnesium ingots since Tuesday, the production cost of magnesium powder rose accordingly, leading to a mild raise 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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

The magnesium market remained stable before the holiday, with a growing wait-and-see sentiment prevailing [SMM Magnesium Morning Meeting Minutes]

[SMM Magnesium Morning Meeting Minutes: Magnesium Market Holds Steady Pre-Holiday, Wait-and-See Sentiment Grows] February 10, Raw material side: Dolomite supply tightens as top-tier enterprises in Wutai area remain suspended, prices maintain a firm trend; ferrosilicon futures are in the doldrums, spot transactions sluggish, prices expected to continue consolidating narrowly. Magnesium ingot market offers hold steady, mainstream transaction prices in Fugu area remain at 16,350-16,450 yuan/mt, transactions mainly supported by domestic trade rigid demand and foreign trade March order stockpiling, market expectations for price declines weaken, recent market likely to continue fluctuating rangebound. Magnesium alloy market benchmark prices and processing fees both hold steady, downstream pre-holiday procurement pace slows down, supply-demand tight balance supports processing fees remaining firm. Magnesium powder market operates steadily, enterprises' pre-holiday stockpiling largely completed, both domestic and foreign trade demand show mediocre performance, transactions mainly rigid demand. Overall, pre-Chinese New Year, the market enters a stable wait-and-see phase, cost support and weakening demand counterbalance each other, prices across varieties are expected to see limited fluctuations before the holiday.

3 hours ago

4 hours ago

Guangdong Xianglu Tungsten Industry Long-Term Contract Prices for the First Half of February 2026

The tax-inclusive unit prices for Guangdong Xianglu Tungsten's long-term contracts in the first half of February 2026 are as follows: Unit price for black tungsten concentrate with a grade above 55%: 691,000 yuan per metric ton, up 135,000 yuan per metric ton MoM.

4 hours ago

The long-term contract prices of a tungsten enterprise in Guangdong were raised in the first half of February compared to the previous month.

[Tungsten Industry Long-Term Contract Information] SMM February 10: A tungsten enterprise in Guangdong announced the long-term contract prices for the first half of February. The unit price for black tungsten concentrate with a grade above 55% was 691,000 yuan/mt, up 135,000 yuan/mt MoM. The unit price for white tungsten concentrate with a grade above 55% was 690,000 yuan/mt, up 135,000 yuan/mt MoM. The unit price for ammonium paratungstate was 1,000,000 yuan/mt, up 200,000 yuan/mt MoM. All prices include 13% VAT.

4 hours ago