Price

Magnesium Pricing and Market Data

Magnesium prices have been highly volatile due to Chinese production dominance (~85%) and recurring supply disruptions. The 2021 energy crisis saw prices spike from ~$2,500 to over $6,000/tonne within weeks as Chinese Pidgeon process plants were shut down under dual-control energy policies. Prices subsequently normalized to $2,500-3,500/tonne. No exchange-traded magnesium futures exist; pricing relies on Asian Metals and Fastmarkets assessments. The Pidgeon process (dominant in China) is extremely energy-intensive (~35-40 MWh/tonne), making magnesium supply uniquely sensitive to Chinese energy policy and electricity costs.

Pricing Mechanisms

Magnesium is priced using benchmarks from Asian Metals/Fastmarkets. Magnesium pricing operates through a combination of exchange-based benchmarks, price reporting agency assessments, bilateral negotiation, and long-term offtake contracts. The specific mechanism depends on product form, grade, and the buyer-seller relationship.

Price History and Notable Market Events

The Magnesium market has been shaped by the following key events:

Price Drivers

Key factors influencing Magnesium prices include production levels in China (85% of global supply), demand from aluminum alloy production and automotive die casting, inventory levels, energy costs, and government policy actions such as export restrictions or strategic stockpiling.

Spot vs. Contract Pricing

The Magnesium market features both spot transactions and longer-term contracts. Spot prices reflect current conditions and are more volatile, while multi-year offtake agreements provide supply security for both producers and consumers. Current spot pricing is in the range of 3,000-3,500 $/tonne.