[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 Weekly Review: Entire Magnesium Industry Chain Weakens; Supply-Demand Weakness Keeps Market Under Pressure] This week, China's magnesium industry chain was in the doldrums across the board. Dolomite prices in Wutai, Shanxi, remained flat. Regional supply tightened, but national supply was ample, and only just-in-time procurement was insufficient to drive prices higher. Fugu and Shenmu 9990 magnesium ingot mainstream prices were 15,750-15,850 yuan/mt, down 200 yuan on the week. High in-factory inventory prompted producers to sell at lower margins, while downstream buyers stayed on the sidelines, making only small restocking purchases, resulting in slow destocking. The average FOB price of magnesium ingot at Tianjin port was $2,275/mt. Overseas demand was sluggish due to the summer break, foreign buyers pushed for lower prices, and new orders were scarce. Falling raw material prices dragged down magnesium powder and magnesium alloy prices. Small and medium-sized magnesium alloy plants cut production, but earlier stockpiles were ample. Two-wheeler demand weakened, putting processing fees under pressure. Both upstream and downstream demand softened simultaneously, and cost support was insufficient. In the short term, the entire magnesium product range is expected to remain in the doldrums.

[SMM Magnesium Weekly Review: Supply-Demand Tug-of-War Intensifies, Magnesium Ingot Market Remains in the Doldrums ] This week, China’s magnesium ingot market drifted lower overall. Fugu and Shenmu 99.90% magnesium ingot quotes were at 15,950-16,050 yuan/mt, down 350 yuan/mt on the week. After the holiday, market pessimism spread; smelters were active in selling, while downstream only made just-in-time procurement. Amid strong supply and weak demand, prices continued to decline gradually. The average FOB price at Tianjin port was $2,365/mt. China’s smelters struggled to hold prices firm, and FOB offers adjusted downward in tandem. Outside China, as the summer break approaches, new orders were scarce, and foreign trade was sluggish. Dolomite cost support was limited. Magnesium powder and magnesium alloy weakened in tandem. Weak downstream demand in the off-season dragged on the market. In the short term, magnesium ingot will remain in a weak consolidation.

[SMM Magnesium Express]Recently, the FOB price of magnesium ingots at Tianjin Port has stabilized at $2,330-$2,400 per ton. Overseas demand remains sluggish, with downstream automakers and die-casting plants adopting a wait-and-see approach, resulting in scarce new orders. The market is supported only by essential demand and long-term contracts. Domestically, manufacturers face inventory accumulation and payment pressure, compounded by planned shutdowns for maintenance at some smaller plants, creating room for negotiation in the market. Due to shipping companies reducing capacity and rising oil prices, freight rates across routes have fluctuated significantly, with tight vessel availability. Prices for routes to Europe, India, and South Korea show marked divergence, further constraining foreign trade deals. In the short term, the FOB price of magnesium ingots is caught between cost support and downward pressure, maintaining a weak and volatile overall trend.

[SMM Magnesium Weekly Review: Intensified Supply-Demand Tug-of-War, Magnesium Ingot Market Remains in Stalemate and Consolidation This Week] This week, the overall market for dolomite and magnesium products remained stable, with the market showing a supply-strong, demand-weak pattern. Dolomite quarries in Wutai, Shanxi, were shut down due to environmental protection measures, leading to localized tight supply of high-grade dolomite. However, national inventory remained ample, and downstream users purchased as needed, keeping prices stable. Magnesium ingot supply in major production areas was abundant, while downstream buyers only made just-in-time procurement, resulting in a stagnant market. Export orders were sluggish, with a strong wait-and-see sentiment. Magnesium powder followed the raw material trend, and the industry was in the demand off-season, with mediocre domestic and foreign trade transactions. Magnesium alloy production was steady, but enterprise orders diverged. Some producers saw rising inventory, an increase in low-priced supply, and a widening price spread. The supply-demand tug-of-war across the industry chain intensified, and short-term price fluctuations for various product categories remained limited, with the market expected to continue running steadily.

[SMM Magnesium Weekly Review: Cost Support vs. Weak Demand — Magnesium Prices Rose First Then Fell] Magnesium prices rose first then fell this week. At the beginning of the week, prices surged driven by rising coal costs, but later pulled back due to downstream resistance to high prices and sluggish transactions. Dolomite prices remained stable, while magnesium powder and magnesium alloys fluctuated in line with magnesium ingot prices. Export inquiries recovered but actual transactions remained low. In the short term, the market is expected to continue in the doldrums with range-bound fluctuations.