Magnesium Prices Rise Amid Higher Costs, But Demand Weakness Limits Momentum

[Magnesium Market Remains in the Doldrums; Transactions Improve but Price Trend Unchanged] Fugu magnesium ingot mainstream quotations stand at 15,400-15,500 yuan/mt, with FOB quotations at $2,190-2,290/mt. Weak demand in China and overseas, coupled with mounting inventory, has prompted producers to sell at concessions. Market sentiment is pessimistic and cautious, and prices are expected to remain in the doldrums in the short term.

[Supply Continues to Release but Demand Remains Weak, Magnesium Ingot Under Pressure] Quotes for magnesium ingot in China's main production areas continued to decline today. Producers showed strong willingness to sell and recoup funds, with supply continuing to release. However, end-use demand in China and overseas remained sluggish, with only rigid-demand transactions concluded. Market sentiment was largely wait-and-see, and inventory pressure mounted. Overall, the market was weak and under pressure ahead of the holiday.

【SMM Magnesium Flash】On October 1st, Latrobe Magnesium released an updated project status, indicating that the installation progress of its Phase 1B demonstration plant in Victoria has reached 90%, marking a significant increase from 70% at the end of August. Overall commissioning is 25% complete, with successful dry test runs of the ball mill and briquetting machine. Key installation activities in the reduction furnace area have been completed, and vacuum testing is currently underway for 30 sets of distillation tanks and condenser components. The company maintains its target of producing the first batch of magnesium metal (purity >98%) by the end of 2026, and project expenditures are being controlled within the original budget of AUD 6.1 million. As the demonstration line gradually commences production, its low-carbon process route for extracting magnesium from lignite ash is expected to undergo industrial verification.