Magnesium Ingot Weekly Price Rose, Upstream Support Strong, Downstream Follow-up Insufficient, Upside Room Limited [SMM Magnesium Weekly Data]

Published: Aug 14, 2026 18:01

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[Weekly Magnesium Ingot Prices Rise on Strong Upstream Support; Insufficient Downstream Follow-Through Limits Upside Room] This week, mainstream quotations for magnesium ingot in major producing areas were 15,900-16,000 yuan/mt, up 100 yuan/mt WoW, with FOB prices at $2,250-2,350/mt. This round of magnesium ingot price gains was driven by three factors: supply-side maintenance-related production cuts, cost push from coal and ferrosilicon, and concentrated delivery and restocking by traders. However, after the price increase, downstream fear of high prices emerged and transactions returned to mediocre levels; foreign trade remained weak, constrained by exchange rate fluctuations and the uncertain recovery of summer break orders. Upstream dolomite prices were stable, with sufficient supply from multiple channels; downstream magnesium powder and magnesium alloy prices followed the increase, but demand follow-through was insufficient. Magnesium alloy processing fees remained under pressure due to ample inventory, the impact of non-standard supply sources, high-temperature maintenance at die-casting enterprises, plastic substitution in two-wheelers, and other factors. In the short term, cost support is pitted against weak demand, and magnesium prices continue to move sideways.

Production and Inventory Briefing

1.1 Weekly Production

From August 7 to August 13, weekly production at sample magnesium plants nationwide was 22,538 mt, with a weekly operating rate of 73.35%, up 1.91% WoW. According to the survey, several smelting producers in major primary magnesium producing areas have already resumed normal production, driving primary magnesium output in the market into a steady uptrend. As more magnesium smelters gradually achieve stable and full production, total primary magnesium supply is expected to continue its sustained growth.

1.2 Weekly Inventory

1. This week, primary magnesium smelter inventories fell 2.20% WoW, and primary magnesium market inventories overall showed a continued pullback. This round of inventory decline was driven mainly by two factors. On the one hand, although more producers in major primary magnesium producing areas resumed production this week and total industry output edged up, the pace of resumption was relatively gradual, overall output growth was limited, and new supply provided only weak replenishment to inventories. On the other hand, downstream traders carried out concentrated restocking, while previously pending delivery orders were fulfilled in a concentrated manner. Overall market trading activity improved noticeably, and large amounts of spot cargo at plants were absorbed, directly driving rapid destocking of plant inventories. Looking ahead, as the pace of resumption at magnesium smelters continues to accelerate, total primary magnesium output will expand further, and supply-side pressure in the market will gradually build. At that point, magnesium plant inventories are likely to end the current downward trend and stop falling and rebound.

2. This week, magnesium ingot social inventory rose 3.57% WoW, showing a slight inventory buildup. Magnesium ingot prices were initially stable and then strengthened this week, mainly due to stronger cost support—coal and ferrosilicon prices continued to move higher, lifting producers' sentiment toward holding prices firm and weakening market expectations of price declines. Meanwhile, as some orders approached delivery periods, traders carried out staged stockpiling purchases this week. However, of the cargo purchased by traders this week, only a small amount directly flowed to China's downstream end-users, while most was held in inventory for delivery demand in mid-to-late August. It was this pace mismatch of “front-loaded procurement and delayed warehousing” that caused social inventory data to accumulate this week. Overall, the current inventory buildup was driven more by temporary stockpiling than by a substantive recovery in end-use demand. Going forward, attention still needs to be paid to how cost-side trends and delivery pace will further affect inventory changes.

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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