The magnesium ingot market in Shaanxi region has slightly increased, with an average market price of 16000 yuan/ton as of the end of the month and 15950 yuan/ton at the beginning of the month, an increase of 0.31%.
This month’s market analysis
In August 2026, the domestic magnesium market showed a typical narrow range oscillation and bottom grinding and energy storage trend, with an overall price range between 15750 yuan/ton and 16000 yuan/ton. At the beginning of August, the magnesium price was about 15950 yuan/ton, and it closed at 16000 yuan/ton at the end of the month, with a slight increase of about 0.31% throughout the month. However, there were multiple ups and downs during the month, and the overall trend was characterized by “stability in the front, weakness in the back, and a tail up at the end of the month”.
Fundamentals:
On the supply side, as we enter August, most maintenance manufacturers have resumed production, and spot supply has significantly increased compared to the previous period. The operating rate of the entire industry maintains a steady upward trend, and the overall supply in the spot market is in a relatively loose range. The differentiation characteristics of the supply side are more prominent – some factories have completed maintenance and resumed production, while some enterprises are still constrained by factors such as losses and equipment maintenance and have not yet resumed work, and some factories are actively reducing production capacity due to long-term sustained losses. However, in terms of overall quantity, the supply increment is controllable, and the overall supply and demand maintain a relatively loose pattern.
The overall demand of downstream terminals on the demand side is weak, and the upward momentum of the magnesium market is insufficient. Downstream companies generally maintain a low inventory turnover model, and the entire industry adopts a strategy of on-demand procurement. The market lacks effective support from centralized buying. Downstream magnesium powder and magnesium alloy have followed suit, but there is insufficient demand follow-up. Magnesium alloy processing fees continue to be under pressure due to factors such as sufficient inventory, impact of non-standard sources, high-temperature maintenance of die-casting enterprises, and plastic substitution for two wheelers.
The overall increase in raw material costs on the cost side directly raises the comprehensive cost of magnesium smelting. The current comprehensive cost of magnesium has significantly exceeded the spot market price, and the industry as a whole has entered a loss zone. The extent of losses for small and medium-sized smelting enterprises continues to expand, further highlighting the situation of cash flow pressure. Most magnesium factories have fallen into a situation of inverted production and sales, with prices close to the comprehensive production cost line, leaving extremely limited room for pricing.
Future forecast
The magnesium price in September is likely to show a trend of “stable to strong, fluctuating and recovering”, and the price center is expected to slightly shift upwards. However, due to weak demand, the upward height is limited, and the expected operating range is between 15800-16200 yuan/ton.
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