US Defense Dept Seeks Domestic Investment in Critical Minerals like Magnesium and Titanium

[Rising magnesium ingot production costs push up prices, sluggish demand constrains rebound] Fugu magnesium ingot offers in both domestic and overseas markets rose along with higher costs, but end-use demand in China and outside China failed to follow through, limiting upward momentum. In the short term, magnesium ingot prices are expected to continue moving sideways within a range, with attention on downstream restocking and production cuts by producers.

[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 Magnesium Express】On August 27, the starting auction price of Hongliulin lump coal, a raw material for blue carbon, stood at 800 yuan/ton, up 20 yuan/ton from the previous period; the auction volume was 77,500 tons, down 13,500 tons from the previous period; the average transaction price was 896 yuan/ton, up 80.82 yuan/ton from the average price of the previous period. The lowest auction price today is 894 yuan/ton, and the highest price is 902 yuan/ton. As the core raw material for primary magnesium smelting, the rising price of coal directly pushes up the production cost of primary magnesium manufacturers, creating strong cost-side support. Affected by this, smelting manufacturers have a strong reluctance to sell, and the quotation of magnesium ingots has been raised to 15,800-15,900 yuan/ton, an increase of 50 yuan/ton from earlier.