Hunan Magnesium Yu Joins 2026 National Magnesium Chain, Aiming for Global Leadership in Deformed Magnesium Alloys

[SMM Magnesium Express]On June 15, according to China Machinery News, Gansu's first high-end magnesium-based materials project commenced construction in Guazhou. With a total investment of 600 million yuan, the project will produce 14,400 tons annually of high-purity magnesium oxide and other products, generating over 1 billion yuan in output value upon full completion. Utilizing byproduct magnesium chloride hexahydrate from Qinghai's salt lakes as raw material, the project transforms the long-standing "magnesium harm" plaguing the salt lake industry into high-value-added "magnesium treasure," achieving green recycling. The resulting products will achieve over 99.85% magnesium oxide content, applicable to strategic emerging industries such as semiconductor packaging and 5G communications, filling the gap in high-end magnesium-based materials in Northwest China. As the project gradually comes online, China's import substitution capability in the field of high-end magnesium-based materials is expected to further strengthen.

[SMM Magnesium Express]Recently, the FOB price of magnesium ingots at Tianjin Port has stabilized at $2,330-$2,400 per ton. Overseas demand remains sluggish, with downstream automakers and die-casting plants adopting a wait-and-see approach, resulting in scarce new orders. The market is supported only by essential demand and long-term contracts. Domestically, manufacturers face inventory accumulation and payment pressure, compounded by planned shutdowns for maintenance at some smaller plants, creating room for negotiation in the market. Due to shipping companies reducing capacity and rising oil prices, freight rates across routes have fluctuated significantly, with tight vessel availability. Prices for routes to Europe, India, and South Korea show marked divergence, further constraining foreign trade deals. In the short term, the FOB price of magnesium ingots is caught between cost support and downward pressure, maintaining a weak and volatile overall trend.

Affected by the traditional consumption off-season and raw material price transmission, China’s deep-processed manganese products came under overall downward pressure this week. Products showed differentiated market performances due to distinct supply-demand fundamentals, with obvious linkage across the industrial chain.