1 Market Review
1 Dolomite
This week, the ex-factory price, excluding tax, for 1-3 cm dolomite (Wutai) was 108 yuan/mt, flat WoW, while the price for 2-4 cm dolomite (Wutai) was 138 yuan/mt, also flat WoW.
Dolomite market prices held steady overall this week, with the supply-demand pattern gradually shifting towards a tight balance. Supply side, top-tier enterprises maintained orderly production, ensuring stable supply without significant shortages or surpluses. Demand side, national magnesium plant operating rates continued to fluctuate at highs, and two primary magnesium smelters in the main production region successfully produced magnesium ingots this week, further amplifying dolomite demand and significantly strengthening downstream market support. Overall, dolomite prices in the Wutai region are expected to hold up well going forward.
1.2 Magnesium Ingot
1.2.1 Magnesium Ingot (Fugu, Shenmu - Main Production Region)
This week, magnesium prices were under pressure. As of press time, mainstream quotations for 99.90% magnesium ingot in the main production region were maintained at 16,400-16,500 yuan/mt, with the price center moving lower, down 250 yuan/mt WoW.
Magnesium prices held up well this week. Influenced by a sharp rise in coal prices, primary magnesium smelters showed stronger reluctance to sell and took the lead in raising prices. As of press time, the single-day quotation for 99.90% magnesium ingot in the main production region was raised by 200 yuan/mt. Overall, successful production resumptions by primary magnesium smelters in the main production region increased daily production to around 2,000 mt. The resulting excess supply of primary magnesium led to signs of price decline early in the week. However, prompted by sudden temperature drops in many regions, winter stockpiling started earlier. With coal prices holding up well and cost support in play, magnesium prices rose sharply.
1.2.2 Magnesium Ingot (Tianjin Port - FOB China)
This week, the FOB China price was quoted at $2,270-2,350/mt, averaging $2,310/mt. Traders' sentiment to hold prices firm was prominent this week, but downstream overseas inquiries continued to drive down prices.
Since last Friday, factory quotations remained firm, and traders' FOB offers were also generally adjusted slightly higher. However, since the market opened on Monday, the actual transaction prices were mainly concentrated in the range of $2,270–2,300/mt, with overall limited transactions. Current inquiries are mostly for forward orders in 2026, but due to magnesium prices fluctuating rangebound recently, buyers have not yet placed actual orders. It is expected that after entering November, some traders will gradually arrange shipments, but overall export orders are projected to shrink significantly, and transaction prices may also face further downward pressure.
1.3 Magnesium Powder
This week, mainstream market prices, including tax, for 20-80 mesh Chinese magnesium powder were 17,300-17,500 yuan/mt ex-factory; the FOB China price was $2,430-2,530/mt.
This week, downstream orders for magnesium powder remained sluggish, with inquiries showing weakness after entering November. Overall steel mills also synchronized production cuts, leading to a lack of support on the demand side for magnesium powder. Despite recent firm prices, downstream wait-and-see sentiment was strong, and purchase willingness was generally weak. On the production side, the operating rate for the magnesium powder industry stayed at a low of 43% in October, with the overall production strategy focusing on "production based on demand." The contraction in output reflected insufficient market vitality. Overall, against the backdrop of persistently weak demand and proactive supply contraction, magnesium powder prices are expected to remain under pressure in the medium and long term.
1.4 Magnesium Alloy
This week, the mainstream tax-included ex-factory price for Chinese magnesium alloy was 18,150-18,250 yuan/mt, and the mainstream FOB price for Chinese magnesium alloy was $2,520-2,600/mt.
This week, magnesium alloy prices continued to edge down along with primary magnesium, but alloy processing fees remained firm. From a supply-demand perspective, the magnesium alloy market showed a structural imbalance in the short term. The operating rate on the production side stayed high, and the tight supply situation had eased moderately. However, most enterprises still followed order-based production schedules, with some manufacturers' schedules extending to mid-November. Looking ahead, as upstream magnesium alloy producers accelerate production, the supply shortage is expected to ease effectively. Currently, downstream die-casting plants show low acceptance of processing fee increases, so processing fees are expected to remain firm in the short term but face a risk of pullback later.
2 Weekly Summary
Based on this week's market performance, the magnesium market overall showed a pattern of the domestic market outperforming the overseas market and raw material divergence. Domestic magnesium ingot prices fluctuated amid a tug-of-war between coal cost support and increased supply from production resumptions in major producing regions. The export market, however, was under pressure due to weak overseas demand and efforts to drive down prices. Downstream demand for magnesium powder and magnesium alloy remained sluggish. The magnesium powder industry responded with low operating rates, while magnesium alloy faced structural contradictions with firm processing fees but low downstream acceptance. Overall, the cost side provided a floor for prices, but supply-demand imbalance remained the market's dominant factor. In the short term, magnesium product prices are expected to continue in the doldrums.
