[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.

[Tug-of-War between Sellers and Buyers Intensified, Magnesium Market Retreated after Rapid Rise, Price Center Shifted Downward] Today, the 99.90% magnesium ingot price in major producing areas was quoted at 16,600-16,700 yuan/mt, basically flat compared with earlier quotes, with increased low-priced supplies in the market.

[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: N-type recharging polysilicon was quoted at 33-35.9 yuan/kg. Polysilicon prices were generally weak. Dense/recharging prices were relatively stable, with low trading volume. Mixed packages gradually became the market mainstream, with prices for some grades falling to around 30 yuan. Wafer: Market 18X wafer prices were 0.88-0.9 yuan/piece, 210RN wafer prices were 0.98-1.00 yuan/piece, and 210N wafer prices were 1.18-1.2 yuan/piece. Currently, the lower end of the 210R price range still showed a downward trend, while the other two sizes remained temporarily stable. Leading wafer enterprises continued to hold prices firm. According to SMM statistics, the overall furnace-loading costs across companies declined notably, and current selling prices could still cover cash costs.

[SMM Coking Coal and Coke Daily Brief] News: Mainstream steel mills in Hebei and Shandong accepted the fourth round of coke price increases, with wet quenching coke raised by 50 yuan/mt and coke dry quenching raised by 55 yuan/mt, effective from midnight on May 26, 2026. In terms of supply, the fourth round of coke price increases has been implemented, and most coke producers maintained moderate profits. However, coking coal prices have expectations of rising, which may squeeze coke producers' profits. Coke producers showed limited production enthusiasm, and coke supply remained stable for now. Demand side, finished steel futures pulled back notably, but steel mills' daily average hot metal production continued to fluctuate at highs, sustaining rigid demand for coke, and buyers still had willingness to restock. In summary, coke had strong cost support, and the fourth round of coke price increases has been fully implemented. In the short term, the coke market is expected to hold up well.

[Secondary Lead Production Update] Affected by the rise in coal prices triggered, a secondary lead smelter in the northwest saw changes to its production resumption plan. The smelter originally planned to carry out furnace heating and resume production in early June, but has now shifted to a wait-and-see stance. Currently, raw material scrap battery prices stay high, and if smelting coke prices rise significantly further, the enterprise may delay its production resumption.

SMM May 25 News: Driven by rising market expectations for coal policy changes and concerns over tightening supply, bullish sentiment was released in a concentrated manner. Coking coal and coke futures hit the daily limit up on May 25 and remained locked at the limit. As of the close of the daytime session on May 25, the most-traded coking coal and coke futures contracts were locked at the daily limit with gains of 7.97% and 7.99%, respectively. The limit-up moves in coking coal and coke lifted the broader ferrous metals and related raw material sectors, with the ferrosilicon continuous most-traded contract rising 3.97% on May 25. Supported by the strengthening prices of raw materials such as coal and ferrosilicon, magnesium ingot prices moved higher, with magnesium ingots gaining over 2% in a single day on May 25. Bullish sentiment in the market had already begun to emerge last Sunday. Rising Coal and Ferrosilicon Prices Highlight Cost Support for Magnesium Ingots Spot market: Primary magnesium smelting is highly dependent on raw materials such as coal and ferrosilicon, with a clear cost transmission chain. As coal prices continued to rise, cost pressure on upstream magnesium enterprises increased significantly. Some upstream enterprises reported that they had already raised their quotations to 16,700 yuan/mt last Sunday. On May 25, although morning inquiries were lukewarm, supported by the rigid cost underpinning from rising raw material prices, most producers still held firm at 16,700 yuan/mt, with a strong willingness to hold prices firm. By region, magnesium ingot prices across China were generally raised by 350 yuan/mt. Mainstream quotations for magnesium ingots (9990) in Fugu, Shenmu, and Inner Mongolia were 16,700 yuan/mt, while quotations in Wenxi were 16,900 yuan/mt. Currently, relevant policies for the coal mine market have not yet been officially implemented. The industry as a whole maintains a cautious wait-and-see stance, and the pace and impact of subsequent policy implementation deserve close attention. Outlook Looking at this round of magnesium price increases, the core driving factor was the rise in raw material costs such as coal and ferrosilicon, representing a typical cost-push price increase rather than one driven by improvements in supply-demand fundamentals. From the current magnesium market fundamentals perspective, the overall oversupply pattern has not shown significant improvement. Although downstream demand demonstrated a certain degree of resilience, end-use demand showed no notable incremental growth, while supply within the market also showed no obvious contraction, leaving fundamentals lacking strong upward support. Overall, the short-term raw material price increases effectively underpinned magnesium prices, supporting magnesium prices to hold up well. However, constrained by the weak supply-demand pattern, the rebound room for magnesium prices in this round is relatively limited. Going forward, it is essential to continue closely monitoring price fluctuations in coal and ferrosilicon raw materials and the implementation of coal mine-related policies, while paying close attention to the release of downstream demand and changes in market supply, in order to assess the pace and upside room for subsequent magnesium price movements. Recommended Reading: