Magnesium Market Continued Consolidating at High Levels, with Cost Support and Demand Stalemate Persisting [SMM Magnesium Weekly Review]

Published: Mar 12, 2026 15:52

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[SMM Magnesium Weekly Review: Magnesium Market Continued to Consolidate at High Levels, with Cost Support and Demand Stalemate Persisting] This week, the overall magnesium industry chain continued to consolidate at high levels, with prices of all categories remaining largely stable. The raw material dolomite market operated steadily, with differentiated supply across regions but overall stability, while the procurement pace on the demand side remained steady. The magnesium ingot market remained in a supply and demand stalemate, as producers showed strong reluctance to sell, and low circulating inventory supported firm quotations. However, both domestic trade and foreign trade demand appeared weak, transactions were sluggish, and FOB quotations stayed at high levels, though actual deals were limited. The magnesium powder market remained stable with a firm tone, domestic trade demand continued to recover steadily, foreign trade growth was limited, and cost support remained in place. The magnesium alloy market's benchmark price held steady, processing fees remained firm, enterprise operating rates rebounded, and downstream demand gradually recovered, though the pace of growth slowed, with overall transactions remaining mild. Looking ahead, the tug-of-war between cost support and weak demand is expected to continue, and the market may continue to consolidate at high levels.

1 Market Review

1 Dolomite

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

This week, China’s dolomite market operated steadily. Supply side, regional structural divergence persisted. Top-tier enterprises in the Wutai area remained shut down, but local raw material inventory provided strong support to supply. Together with timely volume replenishment from other major producing areas, overall national supply remained stable. Demand side, the operating rate of primary magnesium enterprises in the major producing areas of Shaanxi, Shanxi, and Inner Mongolia remained stable, with rigid demand released in an orderly manner. Enterprises held sufficient raw material inventory, and the procurement pace was relatively prudent. Overall, from the supply and demand fundamentals, dolomite market prices were mainly stable.

1.2 Magnesium Ingot

1.2.1 Magnesium Ingot (Fugu, Shenmu - Major Producing Areas)

This week, magnesium prices consolidated at high levels. As of press time, mainstream transaction prices for 9990 magnesium ingot in the major producing areas were stable at 16,700 yuan/mt, basically flat WoW.

This week, magnesium prices in the major producing areas consolidated at high levels. Supply and demand side, on the supply side, primary magnesium smelters showed strong reluctance to sell, supported by costs of ferrosilicon and other auxiliary materials as well as coal gas. Top-tier primary magnesium smelters held firm on quotes at 16,800 yuan/mt. Some primary magnesium smelters gradually delivered previously presold futures orders, and currently tradable inventory in the market remained low, with limited low-priced supply in the magnesium market. On the demand side, domestic trade clients held strong bearish sentiment, and market procurement focused on rigid-demand restocking. Export order deliveries were delayed by the geopolitical situation in the Middle East, and overall support from domestic and export demand was weak. Overall, the magnesium market saw a strong supply-demand stalemate this week, and magnesium prices mainly moved in a high-level consolidation trend.

1.2.2 Magnesium Ingot (Tianjin Port - China FOB)

This week, China FOB prices were quoted at $2,410-2,450/mt, with an average price of $2,430/mt. Magnesium ingot FOB quotes remained firm this week, and market transactions were limited.

This week, magnesium ingot FOB quotes remained at high levels, while overall market trading sentiment was sluggish. Affected by persistently firm ex-factory prices in China, traders had limited low-priced supply on hand, making restocking more difficult, and current activity mainly focused on executing previous orders. Some orders bound for the Middle East still had not been shipped due to factors such as ocean freight rate fluctuations. Although downstream inquiries increased somewhat, actual procurement mostly remained wait-and-see, with very few transactions concluded. Affected by elevated ocean freight rates and transportation uncertainty, Chinese traders generally showed weaker willingness to quote, and market wait-and-see sentiment intensified further.

1.3 Magnesium Powder

This week, the mainstream tax-included ex-factory prices of 20-80 mesh magnesium powder in China were 17,850-18,050 yuan/mt; China FOB prices were $2,570-2,610/mt.

This week, the magnesium powder market generally held up well with a stable-to-firm trend. Affected by rangebound fluctuations in raw material prices, magnesium powder quotations remained firm. Since March, the industry's operating rate has rebounded MoM, and current orders have been mainly boosted by domestic trade demand, showing a steady recovery trend; export orders were average, with limited incremental volume. In the short term, magnesium powder prices are expected to remain supported by raw material costs and stay firm.

1.4 Magnesium Alloy

This week, the mainstream tax-inclusive ex-factory prices of magnesium alloy in China were 18,800-19,100 yuan/mt, and the mainstream FOB prices of magnesium alloy in China were $2,730-2,800/mt.

This week, China’s benchmark price of magnesium alloy remained stable, and processing fees stayed firm. Cost side, the weekly average price of the core raw material magnesium ingot was stable, while the price of auxiliary material A00 aluminum ingot rose unilaterally, providing strong cost support. Supply and demand, the operating rate of magnesium alloy enterprises steadily rebounded, and downstream die-casting enterprises resumed work and production in succession, with procurement demand gradually recovering. End-use demand side, NEV demand continued to grow, while growth in two-wheeler demand was hindered. Overall, the growth rate of end-use demand for magnesium alloy slowed somewhat. The market as a whole remained in a weak supply and weak demand pattern, with mildly moderate transactions, and magnesium alloy prices are expected to remain largely stable in the short term.

2 Weekly Summary

This week, the magnesium industry chain as a whole consolidated at high levels, with prices of all products remaining largely stable. The raw material dolomite market operated steadily, with regional divergence in supply but overall stability, while demand-side procurement pace was steady. The magnesium ingot market remained in a supply-demand stalemate, with producers showing strong reluctance to sell. Low circulating inventory supported firm quotations, but both domestic and export demand remained weak, transactions were sluggish, and FOB quotations stayed high while actual deals were limited. The magnesium powder market held steady with a firmer tone, with domestic trade demand steadily recovering, limited export growth, and continued cost support. The magnesium alloy market saw stable benchmark prices and firm processing fees, with enterprises’ operating rates rebounding and downstream demand gradually recovering but with slower growth, while overall transactions were moderate. Looking ahead, the tug-of-war between cost support and weak demand is expected to continue, and the market may keep consolidating at high levels.

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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