Costs Underpin Firm Magnesium Prices, Domestic and External Demand Cap Upside Room [SMM Spot Magnesium Ingot Report]

Published: Aug 31, 2026 18:06 (GMT+8)

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[Costs Provide a Floor and Keep Magnesium Prices Firm; Domestic and Overseas Demand Limits Upside Room] Today, domestic offers for magnesium ingot in Fugu were 15,900-16,000 yuan/mt, and FOB offers were $2,250-$2,350/mt. Rising coal and ferrosilicon prices raised costs and kept prices firm. However, demand in China and overseas was weak, and overseas market gains were merely transmitted from the domestic market, leaving magnesium ingot in a tug-of-war between cost support and demand pressure.

SMM August 31 News Flash:

Today, mainstream quotations for national-standard 99.9% magnesium ingot in Fugu area were 15,950-16,000 yuan/mt, and mainstream quotations for national-standard 99.8% magnesium ingot in Fugu area were 15,900-16,000 yuan/mt; FOB China prices were quoted at $2,250-2,350/mt.

Today, domestic magnesium ingot prices were generally firm and strong, with mainstream quotations at 15,900-16,000 yuan/mt, mainly supported by higher coal and ferrosilicon prices that drove up production costs, with producers showing a strong willingness to hold prices firm. However, domestic demand was relatively mediocre, with the market supported only by just-in-time procurement from end-users, while traders' stockpiling was weak. After just-in-time orders were released, follow-up demand support was likely to weaken, limiting overall upside room. On the foreign trade front, prices were passively lifted as domestic spot magnesium prices recovered, with FOB quotations moving to $2,250-2,350/mt, but this round of overseas market increases was driven entirely by domestic price pass-through rather than a real improvement in overseas demand. Currently, overseas end-use markets remained depressed, new order releases were limited, foreign trade transactions were sluggish, quotations and actual transaction prices diverged significantly, and actual room for negotiation was large. Combined with exchange rate fluctuations, the rise in overseas market prices lacked support from real orders. In the short term, the magnesium ingot market showed a tug-of-war between firm cost support and persistent demand constraints.

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