Pre-holiday Stockpiling Fails to Offset Strong Supply and Weak Demand; Magnesium Prices Consolidate on a Subdued Note in the Short Term [SMM Magnesium Ingot Spot Report]

Published: Sep 22, 2026 17:21 (GMT+8)

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[Supply-Demand Tug-of-War Persists, Magnesium Ingot Market Under Pressure as Peak Season Falls Short] Some producers in China have periodically released small volumes of low-priced supply, while stockpiling for the two festivals only drove a modest recovery in transactions. With a lack of demand growth both in China and overseas, magnesium prices continue to consolidate on a subdued note, supported by firm pricing and cost floors.

SMM Flash, September 22:

Today, mainstream quotations for 99.90% magnesium ingot in Fugu stood at 15,750-15,850 yuan/mt, and mainstream quotations for 99.80% magnesium ingot in Fugu stood at 15,700-15,800 yuan/mt. China FOB prices were reported at $2,250-2,350/mt.

Today, China's magnesium ingot market edged lower from yesterday. Supply side, some producers released small volumes of low-priced cargoes in phases, but once those low-priced cargoes were cleared, they stopped making further concessions. Sentiment in the market was divided, with some holding prices firm and others still offering discounts. Pre-holiday stockpiling ahead of the double festival drove a slight recovery in transactions, but downstream purchases remained rational, with limited willingness to push prices higher. The pattern of strong supply and weak demand remained unchanged, and prices still faced downward pressure. Foreign trade consolidated on a subdued note, with no significant low-priced cargoes due to cost constraints. End-use demand outside China stayed sluggish, and limited pre-holiday deliveries offered little support. With no new orders, trading activity turned thin. Overall, there was no clear demand growth in China or overseas, and upward momentum for magnesium prices was lacking. Producers holding prices firm, combined with cost support, will limit the downside, and prices are expected to consolidate on a subdued note in the short term.

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