[SMM Magnesium Weekly Review: Cost Support Keeps Magnesium Ingot Bottom Firm; Weak Domestic and Overseas Demand Keeps the Market Consolidating] This week, domestic magnesium ingot prices drifted lower overall. 99.90% magnesium ingot in Fugu and Shenmu was quoted at 15,950-16,050 yuan/mt, down 350 yuan/mt from the previous week. After the holiday, market pessimism spread. Smelters sold actively, while downstream made only just-in-time procurement. Amid strong supply and weak demand, prices continued to grind lower. The average FOB price at Tianjin port was $2,365/mt. Domestic smelters were unable to hold prices firm, and FOB offers were lowered accordingly. As the summer break approached outside China, new orders were scarce, and foreign trade transactions were sluggish. Dolomite cost support was limited. Magnesium powder and magnesium alloy weakened in tandem. Downstream off-season demand weakness dragged on the market. In the short term, magnesium ingot prices are likely to consolidate on a subdued note.

[SMM Morning Meeting Minutes: Strong Reality Meets Weak Demand, Wide Fluctuations in the 410,000–430,000 Range]

This week (July 25–July 30), the SMM copper wire and cable enterprise operating rate recorded 65.94%, down 1.24 percentage points WoW and 1.4 percentage points YoY. During the week, copper prices pulled back in stages but remained in a high range. Downstream enterprises maintained a cautious purchasing sentiment, with market transactions largely supported by rigid demand, and growth in new orders was limited. Inventory side, wire and cable enterprises remained on the sidelines regarding raw material procurement, only restocking for rigid demand on slight pullbacks, with raw material inventory down 0.47% WoW. Facing weak demand in the off-season, wire and cable enterprises slowed their production pace and prioritized digesting existing finished product inventories, with finished product inventories down 1.48% WoW. Looking ahead to next week, the industry remains in the traditional consumption off-season. Coupled with further copper price increases suppressing downstream order signing willingness, enterprises are expected to continue reducing production loads. SMM expects the copper wire and cable operating rate next week (July 31–August 6) to decline by 1.5 percentage points WoW to 64.44%, and also down 1.5 percentage points YoY.

[SMM Magnesium Weekly Review: Consolidation at Highs After Initial Strength as Supply-Demand Imbalance Persists] The magnesium market held up well early this week before consolidating. At the beginning of the week, supported by positive sentiment, concentrated restocking by traders pushed magnesium ingot prices up to 16,000 yuan/mt. However, after order delivery, downstream users turned cautious and stood on the sidelines, leading to thinner trading and slight softening of some quotes. Overseas summer breaks kept outside China demand sluggish; FOB offers were stable but actual transactions were sluggish. Dolomite delivered prices remained stable with ample supply. Magnesium powder tracked the initial rise and subsequent decline of magnesium ingot, while magnesium alloy operating rates dropped notably due to the off-season and shrinking end-use demand. Overall, the supply-strong, demand-weak pattern remained unchanged, and magnesium prices are likely to continue moving sideways in the near term.

China formally ended the value-added tax export rebate for photovoltaic products on April 1, 2026. In the first days after implementation, higher export costs and the renegotiation of existing contracts briefly lifted some module offers. That support proved short-lived.

[SMM Morning Meeting Summary: Tug-of-War in High Range, Awaiting a Breakout Signal Amid the Tug-of-War Between Sellers and Buyers]