Supply Divergence Leads to Transaction Downturn, Strong Cost Support Keeps Prices Firm [SMM Magnesium Morning Meeting Minutes]

Published: Feb 9, 2026 09:17

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[SMM Magnesium Morning Meeting Summary: Supply Divergence Leads to Transaction Decline, Strong Cost Support Keeps Prices Firm] Last week, magnesium prices fluctuated rangebound. Divergence among enterprises on the supply side led to a slight decline in transactions, while losses in semi coke pushed up smelting costs, forming strong support. Underpinned by costs, magnesium prices remained generally firm overall.

SMM February 9 Magnesium Morning Meeting Minutes:

Magnesium Raw Material

Prices

The ex-factory, tax-exclusive prices for 1-3 cm dolomite (Wutai) were 108 yuan/mt, flat from the previous working day; the ex-factory, tax-exclusive prices for 2-4 cm dolomite (Wutai) were 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-Demand

Wutai dolomite prices held steady yesterday. Leading dolomite producers in Wutai remained idled, with dolomite from other regions filling the supply gap. Considering the strong demand support from the high operating rates of primary magnesium producers, dolomite prices were expected to hold up well. The most-traded ferrosilicon futures contract 2603 closed at 5,624 yuan, down 30 yuan from the previous session. In the spot market, ferrosilicon enterprises saw both weak supply and demand. Ferrosilicon producers followed the market, while downstream clients made just-in-time procurement, resulting in sluggish market transactions. Ferrosilicon prices were expected to fluctuate rangebound.

Magnesium Ingot

Today, mainstream transaction prices for magnesium ingot in Fugu were 16,350-16,450 yuan/mt, flat from the previous working day; China's FOB price was $2,320-2,380/mt.

Supply-Demand

Magnesium prices fluctuated rangebound last week. On the supply side, leading primary magnesium smelters showed weak willingness to sell, keeping offers firm; small and medium-sized smelters had increased demand for capital return, leading to more low-price shipments and a slight decline in mainstream transaction prices. Cost side, intensified losses in semi coke pushed up coal gas costs, significantly increasing primary magnesium smelting costs, with notable cost support. Overall, strong cost support kept magnesium prices firm.

Magnesium Alloy

Today, the mainstream tax-inclusive ex-factory price for magnesium alloy in China was 18,600-18,800 yuan/mt; China's FOB price for magnesium alloy was $2,600-2,650/mt.

Supply-Demand

Last week, the magnesium alloy market saw the benchmark price decline while processing fees held steady. Cost side, the weekly average price of the main raw material, magnesium ingot, fell 200 yuan/mt, weakening cost support; auxiliary material A00 aluminum ingot prices fluctuated at highs, providing some cost support. Supply-demand side, magnesium alloy producers operated normally, while downstream die-casting and end-users slowed procurement pace ahead of the Chinese New Year holiday. Overall, the market maintained a tight supply-demand balance, supporting processing fees, which were expected to remain firm in the short term.

Magnesium Powder

Prices

Today, the mainstream tax-inclusive ex-factory price for 20-80 mesh magnesium powder in China was 17,550-17,750 yuan/mt; China's FOB price for magnesium powder was $2,480-2,540/mt.

Supply-Demand

Last week, the magnesium powder market operated steadily overall, with industry production schedules advancing in an orderly manner. Demand side, the domestic trade market continued the purchasing-as-needed pace, while the number of new orders in foreign trade remained generally limited. Early this week, driven by a price correction in raw material magnesium ingots, magnesium powder enterprises conducted some timely procurement, and the overall market trading atmosphere remained moderate.

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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