According to the monitoring of the commodity market analysis system of Shengyi Society, the overall magnesium ingot market in Shaanxi region fluctuated at a low level, with an average market price of 16750 yuan/ton at the end of the month, with a flat rise and fall.
This month’s market analysis
In February 2026, the magnesium market showed a typical “V-shaped” recovery trend before and after the Spring Festival. At the beginning of the month, due to the dual impact of pre holiday capital withdrawal pressure and continuous inventory accumulation, magnesium prices were under pressure and experienced a downward trend and correction; After the holiday, with downstream enterprises resuming work and production one after another, coupled with the increasing reluctance of the supply side to sell, the market trend suddenly changed, and magnesium prices steadily rose. Overall, the game between supply and demand in the magnesium market became increasingly fierce in February, and the role of cost support significantly increased. The recovery pace of the domestic and foreign trade markets showed significant differences.
Supply and demand side
On the supply side, there is a clear structural tightening trend, which has become a key driving force for price increases. The production process remains stable, but manufacturers have a strong reluctance to sell. Smelting enterprises in major magnesium producing areas such as Shaanxi and Shanxi have maintained normal production and operation, without large-scale maintenance or shutdown. However, manufacturers generally have a strong willingness to raise prices, and their willingness to ship at low prices is extremely weak. In late February, most magnesium factories in Shaanxi had raised their prices to over 16500 yuan/ton, with little room for negotiation. The pre-sale model has changed the short-term circulation pattern. Of particular importance is that about half of the magnesium factories in Shaanxi had full pre-sale orders before the holiday, and some manufacturers’ orders were even scheduled until early March. This indicates a significant decrease in the freely tradable spot quantity in February.
On the demand side, domestic demand for replenishment of inventory provides support for prices. In the first week after the end of the Spring Festival holiday, downstream enterprises resumed work at a relatively slow pace, and procurement activities mainly focused on replenishing essential inventory. Magnesium alloy enterprises arrange production according to orders and maintain a tight balance between supply and demand. The magnesium powder market is also mainly executing preliminary orders, and most domestic procurement plans are scheduled to be fully launched in March. This orderly resumption of work and cautious replenishment of inventory, although did not cause explosive growth on the demand side, effectively prevented significant price fluctuations.
In terms of raw materials
In February, the prices of magnesium smelting raw materials showed a trend of differentiation, but overall it provided solid support for magnesium prices. Among them, although the price of ferrosilicon has fluctuated slightly, it has always maintained a strong trend. The dolomite market is stable and improving, with prices rising slightly. However, the price of blue charcoal is still hovering at a low level.
Future forecast
Overall, the magnesium market completed a smooth transition from holiday mode to normal production in February 2026, achieving a moderate price increase in the supply-demand rebalancing. The arrival of the traditional consumption peak season in March is expected to drive magnesium prices to continue oscillating in the high range.
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