Weekly Magnesium Production and Operating Rates Remained Flat, Inventory Trends Diverged [SMM Magnesium Weekly Data]

Brief Commentary on Production and Inventory

1.1 Weekly Production

From May 15 to May 21, the weekly production of sampled magnesium plants nationwide was 23,576 mt, with a weekly operating rate of 77.4%, basically flat WoW.

1.1 Weekly Inventory

1. Producer inventory decreased 4.22% WoW. Magnesium ingot producers faced increasing pressure this week, stepping up shipments. Downstream buyers restocked on dips, driving a recovery in market transactions. Increased spot cargo circulation facilitated rapid digestion of enterprise inventory, with overall industry inventory declining steadily.

2. Social inventory rose 2.6% WoW, mainly due to traders' increased willingness to stockpile after slight price reductions. Meanwhile, concentrated month-end order deliveries and stockpiling led to an increase in port inventory. It is expected that inventory may pull back next week as goods are gradually shipped out.