Latest Update in the SMM Magnesium Market

[SMM Magnesium Morning Conference Notes: Diverging Raw Material Cost Support, Magnesium Market Continues to Fluctuate Downward] On December 15, Wutai dolomite prices held steady, supported by rigid demand; ferrosilicon, however, saw some producers undergo maintenance due to cost pressures, with both supply and demand weak, and is expected to consolidate at the bottom. Magnesium ingot prices continued to decline, with Fugu offers dropping to 15,400-15,500 yuan/mt, amid a pronounced supply-demand imbalance and weak market confidence. Overseas buyers' psychological price levels fell below $2,200/mt, with transactions leaning toward the low end. In the magnesium alloy segment, although end-use demand supported relatively strong processing fees, overall prices still followed the downward trend, pressured by the sharp drop in raw material magnesium ingot prices. Magnesium powder also accelerated its pullback due to weaker raw material costs, with the market dominated by rigid demand transactions and execution of existing orders. Supply saw a slight rebound, and the weak operating conditions are expected to persist. Overall, uneven cost support and sluggish demand are jointly driving the current weak pattern in the magnesium market.

[ SMM Magnesium Morning Meeting Minutes: Cost Support and Demand Game Play Out, Magnesium Market Prices Show Differentiated Trends ] The current market transactions are struggling to change the fundamental situation of oversupply. Coupled with cautious downstream procurement, which remains primarily focused on essential stockpiling, the upward momentum for magnesium prices is expected to be insufficient. Subsequently, the magnesium market may operate under pressure.

[SMM Magnesium Weekly Review: Magnesium Market Overall Under Pressure, Weak Raw Materials Drag Down Downstream Price Performance] This week, the magnesium market overall showed a pattern of strong supply and weak demand, with prices of main products under pressure. Raw material side, dolomite prices remained stable, supported by supply-demand balance. Magnesium ingot prices accelerated their decline, with 99.90% magnesium ingot offers in main production areas falling to 15,500-15,600 yuan/mt, down 400 yuan/mt WoW. Intensified involution on the supply side and downstream wait-and-see sentiment jointly drove prices lower. FOB offers for exports were also under pressure, with actual transactions leaning towards the lower end, and traders waiting for further price pullbacks. Among downstream products, magnesium powder prices accelerated their pullback following the decline in raw material costs. Although order schedules saw a short-term rebound due to Christmas stockpiling, overall demand remained weak. The magnesium alloy market, despite tight spot supply and full order books, saw its good processing fee performance suppressed by weak magnesium ingot prices. The market overall exhibited the characteristic of weak raw materials transmitting to the downstream.

[SMM Magnesium Morning Conference Minutes: Magnesium Market in the Doldrums Overall, Downstream Product Processing Fees Under Pressure] On December 11, the domestic magnesium market overall showed a weak trend. On the raw material side, Wutai dolomite prices remained firm, supported by rigid demand; the ferrosilicon market, affected by the off-season, faced insufficient demand and is expected to bottom out. Magnesium ingot prices continued to decline, with Fugu offers dropping to 15,550-15,650 yuan/mt. As prices approached the cost line, upstream suppliers showed stronger sentiment to hold prices firm, and the market generally viewed 15,500 yuan/mt as a key support level, expecting the decline to gradually stabilize. In downstream products, although the magnesium alloy market saw tight spot supply and full order books, main production areas are actively increasing output, which may limit upside room for its processing fee in the future; the magnesium powder market mainly saw rigid demand transactions, and with raw material prices stabilizing, its prices have also entered a stable range.

[SMM Survey: Global Green Magnesium Industry Race Intensifies as US and Australian Enterprises Accelerate Technological Breakthroughs and Capacity Layout] Recently, US and Australian enterprises have been intensively deploying in the low-carbon magnesium sector, driving the restructuring of the global magnesium supply chain towards cleaner and more localized directions. US-based Tidal Metals has entered into a chlorine distribution partnership with Alexander Chemical to accelerate the industrialisation of magnesium extraction technology from seawater via electrolysis. This process can co-produce nearly 3 mt of chlorine for every 1 mt of magnesium produced, potentially establishing a localized chlorine supply chain. Australia's Latrobe Magnesium has secured $122 million in financing support from the US Export-Import Bank and is expected to complete a commercial-scale fly ash magnesium extraction plant with a capacity of 10kt by 2027. Additionally, in collaboration with an international engineering company, the company is planning a 100,000 mt per year low-carbon magnesium project in Malaysia, leveraging hydropower energy and long-term nickel-iron slag supply agreements to facilitate capacity implementation. US-based TETRA Technologies has also established a joint venture with Magrathea, betting on a magnesium project in Arkansas. The capital market has responded positively to its strategic transformation.

[SMM Magnesium Morning Meeting Minutes: Supply-Demand Imbalance, Magnesium Market Was in the Doldrums Today] Last week, magnesium production rose to a high level, and magnesium alloy demand struggled to reverse the current supply-demand imbalance in the primary magnesium market, which is characterized by strong supply and weak demand. The magnesium market was expected to remain under pressure.

[SMM Magnesium Morning Meeting Minutes: Trading Follow-Up Lacked Strength, Magnesium Prices Were Under Pressure Yesterday] Magnesium prices were under pressure yesterday, as the supply-demand imbalance remained difficult to reverse, and prices are expected to continue consolidating at low levels.

[SMM Magnesium Weekly Review: Magnesium Industry Chain Diverged This Week, Supply-Demand Pattern Dominated the Trend in Each Segment] This week, the performance of each segment in the magnesium industry chain diverged. The magnesium ingot market showed a pattern of increasing volume and falling prices. Industry meetings failed to alleviate the supply-demand imbalance, and production resumptions by manufacturers pushed up production. Downstream rigid demand stockpiling struggled to absorb the incremental supply. Export-side traders had divergent sentiments, and weak overseas demand kept exports under pressure.