[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.

[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.

[SMM Magnesium Weekly Review: Magnesium Ingot Prices Continued to Weaken This Week, Market Pattern of Strong Supply and Weak Demand Persisted] China's dolomite market operated steadily this week, with supply basically stable. Demand was supported by rigid restocking needs from primary magnesium enterprises, and combined with elevated transportation costs, prices are expected to remain stable in the short term. The magnesium ingot market was overall in the doldrums, as producers in major producing regions shipped at low prices under the influence of capital constraints and bearish expectations, with strong supply and weak demand driving continued price reductions. The export market was sluggish, as ex-China buyers took a wait-and-see approach and pushed for lower prices, with FOB prices weakening in tandem, and downward pressure persisting in the short term. Magnesium powder prices pulled back following magnesium ingots, with enterprises producing based on demand. Raw material inventory was sufficient and procurement enthusiasm was low, leaving room for further price reductions in the short term. Magnesium alloy prices moved in sync with magnesium ingots, with processing fees remaining relatively stable. Producers maintained stable supply, and downstream restocking on an as-needed basis drove a slight recovery in transactions, but the overall pattern of strong supply and weak demand persisted.

[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.