[SMM Magnesium Weekly Review: Limited Support from Raw Materials, Magnesium Products Overall in the Doldrums This Week] This week, prices of various products across the industry chain followed magnesium ingots in a weak consolidation trend. Dolomite supplies were replenished adequately across regions; although raw materials tightened in some areas, overall inventory remained ample, and ex-factory prices stayed stable. Magnesium ingot prices in major producing areas first declined then stabilized during the week, with weekly quotes lowered by 250 yuan/mt. Low-priced factories held back from selling, supporting prices to stop falling, while downstream buyers restocked on an as-needed basis. FOB quotes at Tianjin port saw limited fluctuations, and a wait-and-see approach outside China led to sluggish transactions. Magnesium powder stabilized after declining alongside raw materials, with both domestic and external demand in the off-season, limited to just-in-time procurement. Magnesium alloy prices weakened, dragged down by raw materials. Demand divergence was evident, with moderate automotive orders but weak two-wheeler demand. The market faced oversupply, and enterprises lowered processing fees to boost shipments.

[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.

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:

[SMM Magnesium Weekly Review: Weak Supply-Demand Pattern, Magnesium Market Fluctuated Downward Overall This Week] China's magnesium industry chain was overall in the doldrums this week. Upstream, the dolomite market remained stable. In Shanxi production areas, some capacity was shut down due to environmental protection-related controls, tightening quality supply sources. However, supply from other regions quickly filled the gap, keeping overall supply sufficient. Combined with ample raw material reserves at primary magnesium enterprises, only just-in-time procurement was maintained, and dolomite prices remained stable. In major production areas, primary magnesium operations were stable, spot supply was sufficient, producers were active in shipments, and industry competition intensified. Some enterprises offered price concessions to facilitate transactions, driving magnesium ingot prices into a sustained gradual decline. Downstream, end-user wait-and-see sentiment was strong. Influenced by the mentality to rush to buy amid continuous price rise and hold back amid price downturn, most made just-in-time procurement only, with large orders scarce. The market exhibited a pattern of strong supply and weak demand. Export quotations were adjusted downward in tandem, and ex-China trading was sluggish. In deep processing, magnesium powder operations pulled back slightly, with expectations of tightening supply going forward. However, demand in and outside China lacked sufficient support, and the market moved sideways. Magnesium alloy enterprises maintained stable operations, with some inventory accumulating slightly. Industry orders diverged, and price spreads among quotations continued to widen. Downstream demand was mixed, with new energy vehicle demand seeing steady release while two-wheeler demand remained persistently weak. Overall demand support was soft, supply was relatively ample, and prices were in the doldrums in tandem with magnesium ingot.

In April 2026, magnesium prices fell by a cumulative 800 yuan/mt within the month. As of April 30, mainstream quotations for 99.90% magnesium ingot in the Fugu and Shenmu areas remained at 16,600 yuan/mt. In April 2026, domestic magnesium ingot prices continued to decline overall. Supply side, the earlier recovery in magnesium prices drove profit restoration across the industry, and under profit incentives, major magnesium producers actively raised operating rates and increased magnesium ingot production, resulting in a notable increase in market supply and growing overall supply pressure. Demand side, downstream producers in China exhibited strong fear of high prices, mostly making just-in-time procurement, with the overall procurement pace slowing down significantly. Meanwhile, export trade was affected by stricter customs inspections, with order clearance and shipment disrupted, leading to a short-term pullback in exports. Insufficient support from both domestic and external demand dragged April magnesium prices into a sustained decline. Primary magnesium production rose 3.63% MoM in April. April domestic primary magnesium production increased notably, mainly because magnesium prices rose steadily from late March and market conditions continued to recover. Rising magnesium prices drove profit restoration at smelters, prompting previously idled or low-load enterprises to resume production under profit incentives, while operating enterprises simultaneously raised their operating loads. Industry operating rates continued to climb, with enterprises collectively ramping up and resuming production, pushing April primary magnesium production to grow steadily. By province, most primary magnesium smelters maintained stable production in April, while some increased output. Provinces with rising primary magnesium production in April were mainly Shaanxi and Xinjiang. Specifically, primary magnesium smelters in the main producing areas saw production increases, with Shaanxi's share of primary magnesium edging up slightly as two primary magnesium smelters resumed production and most operated at full capacity. In April, one primary magnesium smelter in Xinjiang gradually commissioned new capacity, and Xinjiang's share of primary magnesium production edged up. Looking ahead to May, current magnesium prices are approaching the cost lines of primary magnesium smelters in the main producing areas. Some producers plan to halt production for maintenance in May, and primary magnesium production is expected to edge down slightly in May. In April 2026, magnesium alloy production decreased 7.18% MoM. This round of decline in magnesium alloy production was caused by multiple factors on both the supply and demand sides: affected by the continued decline in magnesium ingot prices, the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn spread among downstream players, with die-casting enterprises showing weak order willingness. This was compounded by the cancellation of some magnesium alloy orders by the two-wheeler industry, triggering a chain reaction that further pressured midstream processing orders. Meanwhile, after a fire incident at a die-casting plant, regional environmental protection supervision tightened, constraining production. Multiple factors dragged down magnesium alloy orders. Supply side, some alloy enterprises entered routine maintenance cycles, leading to phased production cuts, and production performance remained weak under multiple pressures. Magnesium alloy production is expected to continue its upward trend in May. Supply side, according to SMM, multiple magnesium alloy smelters raised their operating rates, and some magnesium alloy production lines at smelters that were under maintenance in April resumed production. A newly built magnesium alloy smelter was completed and put into operation, with magnesium alloy supply rising steadily. Demand side, die-casting equipment is being installed successively, and current magnesium alloy die-casting capacity is rising steadily. Moreover, stricter enforcement of the new national standard for two-wheelers may transmit policy-driven momentum upstream to drive a recovery in magnesium alloy orders. Overall, the magnesium alloy market is expected to see robust supply and demand in May, with magnesium alloy production growing steadily. In early to mid-May, operating rates of China's primary magnesium smelters stayed high, with operating rates in major producing areas rising above 80%. Spot supply of magnesium ingots in the market was ample, and overall inventory pressure on smelters was relatively high. After the Labour Day holiday, some magnesium plants urgently needed to collect payments to pay electricity bills, distribute employee wages, and maintain daily operations, proactively offering price concessions to stimulate transactions. However, supported by raw material and production costs, the room for price adjustments by magnesium plants was limited, and the magnesium ingot price range remained at 16,000-16,500 yuan/mt in early to mid-May. In mid to late May, after a prolonged gradual decline in magnesium prices in the earlier period, magnesium prices bottomed out driven by concentrated downstream restocking, but the overall rebound height was limited. Current market supply pressure is relatively high, and magnesium prices lack unilateral upward momentum. Meanwhile, from the perspective of costs and the supply-demand pattern, downside room for magnesium prices has also narrowed. On one hand, primary magnesium smelters are already approaching the break-even line and can hardly withstand significant deep price drops. On the other hand, current temperatures already meet the conditions for magnesium plants to halt production for maintenance. If prices continue to decline further, smelters may collectively halt production for maintenance to contract supply, ease market inventory pressure, and further support magnesium prices.

[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.

[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.

[SMM Magnesium Weekly Review: Magnesium Market Pulled Back on Weakness, Export Prices Rose Against the Trend on Policy Impact] The magnesium market was overall in the doldrums this week. Magnesium ingot quotes in major producing areas fell 350 yuan/mt WoW to 17,000-17,150 yuan/mt. Downstream buyers showed strong wait-and-see sentiment, and panic selling accelerated the price decline, with the market entering a phase of rational pullback. Export side, affected by tightened customs supervision on non-compliant exports and dual-use items, FOB quotes rose against the trend by $50/mt on Thursday to $2,500-2,600/mt, with domestic and overseas market trends clearly diverging. Magnesium powder and magnesium alloy prices pulled back along with raw materials, while processing fees remained stable, and the market overall showed strong supply and weak demand. Magnesium prices are expected to see gradually narrowing declines in the short term, with subsequent attention needed on changes in export policies and downstream purchase willingness.

[SMM Magnesium Weekly Review: Fear of High Prices Dominates Demand Side, Magnesium Ingots Show Signs of Weakness After Consolidating at Highs] This week, various segments of China's magnesium industry chain diverged in performance, each exhibiting distinct supply-demand patterns. The dolomite market remained stable, with some areas in core production regions halting production, supplemented by supplies from surrounding sources. Downstream primary magnesium smelters saw a slight rise in operating rates and restocked on rigid demand, providing solid demand support, with short-term trends expected to remain stable. Magnesium ingots in major production areas showed signs of weakness after consolidating at highs. Slight inventory buildup at producers weakened the sentiment to hold back from selling, while downstream fear of high prices was strong and orders were scarce, shifting the supply-demand pattern toward buyers. The FOB market for magnesium ingots at Tianjin Port saw weak transactions, with producers' sentiment to hold prices firm cooling down. Short-term quotes may edge lower but are expected to stabilize overall. Magnesium powder prices remained firm, with producers raising operating rates to ensure supply. Both domestic and export demand recovered, and enterprise stockpiling behavior may front-load subsequent demand. Magnesium alloys consolidated at highs, with producers maintaining stable operating rates though some had elevated inventory levels. Downstream procurement was mainly driven by rigid restocking demand, and end-user order release exhibited structural divergence, with short-term prices expected to hold steady.