Magnesium: Trading

No exchange, just term deals with Chinese smelters

Magnesium has no exchange futures contract. Most metal trades under term contracts between Chinese smelters, traders, die casters and aluminium producers. Agencies assess prices; USGS uses S&P Global Platts for the US spot Western and European free-market quotes. Chinese ex-works prices set the world floor. The US market is distinct because anti-dumping duties on Chinese metal and the loss of domestic primary output support a premium. In 2025 the US spot price of $3.20/lb was well above Europe's $2,500/t.

Where it is bought (buyers)

• Aluminium rolling mills in the US, Europe, Japan and Korea buy ingot for alloying
• Die casters for the auto industry in Europe, North America and Mexico buy alloy ingot
• Steelworks buy magnesium granules for desulphurisation; titanium sponge plants buy metal in Japan and China
• Largest importers of HS 8104 by value in 2024: United States 18.4%, Canada 10.2%, Germany 7.8%, India 5.5% (Comtrade)

Where it is sold (sellers)

• Chinese producers in Shaanxi and Shanxi, through exporters (China 60.3% of world HS 8104 exports by value in 2024, Comtrade)
• Israel (Dead Sea Magnesium), Turkey and Brazil sell smaller volumes; Israel was 47% and Turkey 31% of US 99.8% metal imports in 2021-24 (USGS)
• Secondary smelters sell remelted ingot and alloy from scrap

Exchanges and benchmarks

Contract types

• Spot and monthly contracts priced off Chinese ex-works or FOB China assessments
• Annual supply contracts for aluminium mills with quarterly price resets
• Anti-dumping and tariff regimes in the US shape non-Chinese premiums

Top trading houses

• Chinese exporters and specialist light-metal distributors; names and volumes are not published in the sources used

How prices are discovered

• Argus and Fastmarkets assessments of 99.9% ingot ex-works China and FOB China
• S&P Global Platts US spot Western and European free-market prices (used by USGS)
• Shanghai Metals Market daily Chinese quotes