[Dragged Down by Strong Supply and Weak Demand, Magnesium Prices Fell] Magnesium prices were in the doldrums today. Producers' quotes remained firm in the morning session, but some producers cut prices for shipments in the afternoon, with low-priced supplies increasing. Downstream wait-and-see sentiment was strong, with buyers making just-in-time procurement only, and the market showed a pattern of strong supply and weak demand.

[SMM Magnesium Weekly Review: Post-Holiday Magnesium Market Consolidates Weakly, Supply-Demand Dual Weakness Puts Prices Under Pressure] The magnesium industry chain was overall in the doldrums this week. Dolomite prices remained stable, with delivery-to-factory prices consolidating at highs. Magnesium ingot quotes fell due to weak post-holiday restocking and an increase in low-priced supplies, with FOB prices also edging down in tandem. The magnesium powder and magnesium alloy markets held steady with firm processing fees, but downstream buyers remained on the sidelines, presenting an overall pattern of strong supply and weak demand. In the short term, magnesium prices may continue to move sideways.

[Pre-Holiday Surplus Inventory Dragged Down Purchasing, Magnesium Market Trading Sluggish with Short-Term Downward Pressure on Prices] Today, the overall magnesium market trading was sluggish. Smelters maintained firm quotes but offered concessions in some cases. Downstream stocking inventory was sufficient, and the willingness to purchase on demand was weak, leaving short-term magnesium prices under pressure.

[SMM Magnesium Flash News] On the evening of April 28, Baowu Magnesium Industry released its 2025 annual report, showing that in 2025, the company's revenue reached 9.912 billion yuan, with a year-on-year increase of 10.34%; the net profit attributable to the parent company was -18.5489 million yuan, turning from profit to loss year-on-year. The change in the company's performance was mainly affected by the continuous decline in magnesium prices, resulting in a significant year-on-year decrease in the profitability of the magnesium materials business; at the same time, the new project of the company's associated company, Anhui Baomei Light Alloy Co., Ltd., was in the production ramp-up stage, with low output and high costs, and combined with the low magnesium prices.

[SMM Magnesium Weekly Review: Dual Support from Costs and Stockpiling — Magnesium Ingot Prices Stopped Falling and Stabilized This Week] This week, China's magnesium industry chain overall showed a stable-to-firm trend, moving sideways. Raw material dolomite relied on supply from neighboring provinces due to production halts in major producing areas, while downstream primary magnesium smelting operating rates rose to form rigid demand support. Combined with high transportation costs, prices remained stable overall with delivery-to-factory prices consolidating at highs. The Chinese market for magnesium ingots consolidated at lows and stabilized, benefiting from pre-holiday restocking that drove transaction recovery and enterprise sentiment to hold prices firm amid rising smelting costs. The export market remained sluggish as ex-China clients chased lower prices and new orders were weak. Magnesium powder and magnesium alloy markets operated steadily in tandem — the former maintained production based on demand supported by stable domestic and export orders and sufficient raw material inventory, while the latter moved in line with magnesium ingot prices, with processing fees remaining firm and benefiting long-term from demand support driven by tightening regulatory standards for two-wheeled electric vehicles under the new national standard. The overall industry chain supply-demand pattern showed localized divergence but remained generally stable.

Ahead of the Labour Day holiday, the magnesium market saw a recovery in trading activity during the first half of this week, with spot prices holding up well and magnesium prices rising for two consecutive days. Current market support mainly came from the continued release of pre-holiday rigid stocking demand from end-users, with downstream procurement pace following in an orderly manner, effectively revitalizing trading activity in the market. On the other hand, rising coal and ferrosilicon futures prices on the raw material side also provided certain cost support for the magnesium market. Supported by multiple positive factors, suppliers generally maintained firm pricing sentiment, low-priced spot cargo in the market gradually diminished, and the overall magnesium market showed a generally stable with slight rise trend. Magnesium prices rose for two consecutive trading days Spot price side: magnesium ingots and magnesium alloys continued the upward trend from the 28th. Specifically, the SMM 99.90% magnesium ingot (Fugu, Shenmu) price on April 29 was 16,600-16,700 yuan/mt, with an average price of 16,650 yuan/mt, up 0.3% from the previous trading day. The core driver behind this two-day consecutive rise in magnesium prices was pre-holiday restocking demand from downstream end-users. As the Labour Day holiday approached, considering the holiday factor, downstream deep-processing and manufacturing enterprises initiated stockpiling operations in advance, and market procurement enthusiasm improved compared to the previously sluggish conditions. Most downstream enterprises abandoned their earlier wait-and-see sentiment and entered the market to purchase based on their rigid production needs, proactively locking in spot inventory to hedge against post-holiday supply fluctuation risks. The sustained concentrated restocking demand rapidly consumed previously accumulated low-priced inventory in the market, with low-priced resources basically digested and cleared, the market price floor continued to rise, directly driving magnesium prices to raise consecutively. Overall trading activity and transaction sentiment in the market improved during the first half of this week. Outlook Based on the current supply and demand performance in the market, the concentrated release of pre-holiday restocking demand effectively reversed the previously weak market sentiment, boosting confidence among traders and producers to a certain extent. However, from the market pace perspective, after a round of concentrated restocking, downstream stocking demand had been gradually released, and the pre-holiday restocking trend was basically coming to an end. As the Labour Day holiday approached, market procurement activities gradually ceased, and concentrated trading momentum was expected to pull back. Based on current market conditions, domestic magnesium prices were expected to remain generally stable in the short term. In the long term, the domestic magnesium market needs to focus on two aspects going forward: first, the maintenance arrangements and production pace changes of domestic magnesium ingot producers — if mainstream smelters arrange concentrated equipment maintenance and production cuts later, this will directly compress overall market supply, alter the current supply-demand balance, and drive price fluctuations; second, the recovery of demand in markets outside China — currently, ex-China magnesium product demand remained generally stable but weak, and whether export orders can steadily increase and whether export markets can recover will directly affect domestic magnesium ingot exports, becoming an important factor influencing medium and long-term magnesium price trends.