Henan Dewei Advances Magnesium Alloy Wheel Testing for Ford, Boosting Global Lightweight Auto Parts Competitiveness

[SMM Magnesium Weekly Review: Magnesium Ingot Market Bottoms Out, Off-Season Demand Pressure Drags on Price Rises] This week, smelting maintenance in major production areas bolstered producers’ sentiment to hold prices firm, and the release of speculative demand drove a recovery in spot magnesium. However, downstream inventory was high and purchasing remained cautious, causing price rises to struggle. The average FOB price of magnesium ingot at Tianjin port was $2,305/mt, edging up slightly in line with domestic prices. Yet, overseas demand was weak during the summer break off-season, leaving foreign trade sluggish. Dolomite prices were stable, offering limited cost support. Magnesium powder and magnesium alloy followed the uptrend, but downstream off-season demand was sluggish. In the short term, the overall magnesium market is expected to maintain a sideways movement pattern.

[SMM Magnesium Market Analysis: Semi Coke Losses Raise Smelting Costs; China’s Magnesium Ingot Comprehensive Cost Rose MoM in June] At the end of May, a safety accident at the Qinyuan coal mine directly tightened the supply of raw coal in the region, rapidly driving up market coal prices. There was a significant time lag in the transmission of semi coke prices, and losses on production at semi coke plants intensified, substantially increasing the energy raw material cost for primary magnesium smelting. Enterprises mitigated fixed expenses such as plant and equipment depreciation by raising capacity, which only slightly alleviated cost pressure. The incremental cost impact from higher energy prices was stronger, pushing up the industry’s overall smelting cost. Processing profits at upstream plants continued to be squeezed, and profit margins narrowed for most enterprises.

The high-purity manganese sulfate market staged a segmented performance in the first half of 2026, rallying in Q1 before slipping into corrective volatility in Q2. Q1 prices were buoyed by cost advantages and export policies, while Q2 came under pressure amid slack seasonal demand and expanded supply. Nevertheless, prices avoided a steep decline thanks to persistently high upstream raw material prices and the cushion of long-term orders, only fluctuating within a narrow band.