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【SMM Magnesium Express】Recently, at the 2026 Shanghai Die Casting Exhibition, the integrated die-cast magnesium alloy rear floor jointly submitted by Li Auto and Changzhou Duoli Auto Parts won the "Gold Award Casting". Currently, the integrated die-casting in the industry mostly adopts aluminum alloy solutions, which faces a bottleneck in weight reduction space. As a strategic lightweight material, magnesium alloy can reduce the weight by about one third compared with aluminum alloy, and has outstanding vibration and noise reduction performance. However, the die-casting of large body load-bearing parts is prone to porosity and cracks, making it difficult to achieve mass production, and most projects only stay in the sample stage. Through self-developed magnesium alloy materials and optimized structure and die-casting process, Li Auto has achieved a 10% increase in casting toughness and a 40% increase in casting fluidity, breaking through the pain point of mass production of large magnesium alloy thin-walled parts. This component replaces the traditional multi-part welding structure, improving body rigidity; the weight reduction can improve the vehicle's power consumption and range; the inherent vibration reduction advantage of the material can also optimize the chassis NVH performance, balancing safety, energy efficiency and driving quietness. Li Auto has also become one of the few domestic car companies to realize the mass production of this technology.

【SMM Weekly Magnesium Inventory Express】This week, the social inventory decreased by 4.6% month-on-month, showing an inventory destocking trend. The destocking of social inventory this week is mainly affected by two factors: on the one hand, as it is the end of July, some long-term contract orders are delivered centrally, and enterprises purchase and deliver goods according to order requirements; on the other hand, some downstream end users also enter the monthly restocking stage, and a small amount of stocking purchases drive inventory digestion. At the same time, due to the recent high volatility of ex-factory prices of magnesium ingots, traders generally have low willingness to stock up except for necessary order fulfillment and replenishment, failing to timely replenish the consumed inventory. In general, the destocking of social inventory this week is relatively obvious.

【SMM Weekly Magnesium Inventory Express】This week, manufacturers' inventories decreased by 3.45% month-on-month. On the supply side, domestic primary magnesium output showed a downward trend this week, with output contraction at some enterprises in the early stage, which has alleviated the spot supply pressure on primary magnesium smelters to a certain extent. In terms of transactions, as the end of the month approaches, foreign trade orders have entered a centralized delivery phase, which has effectively boosted the recent market trading sentiment. With the release of spot transactions, the finished product inventories of some smelters have been consumed, accelerating the pace of inventory destocking.

【SMM Weekly Magnesium Output Briefing】From July 24 to July 30, the weekly output of sampled magnesium plants across China reached 22,140 tons, with a weekly operating rate of 72.64%, down 5.70% month-on-month. According to research, multiple primary magnesium smelting enterprises remain in maintenance this week, yet as manufacturers that resumed production one after another in the first and early second ten days of July, the primary magnesium output next week is expected to rise slightly.

[SMM Magnesium Weekly Review: Consolidation at Highs After Initial Strength as Supply-Demand Imbalance Persists] The magnesium market held up well early this week before consolidating. At the beginning of the week, supported by positive sentiment, concentrated restocking by traders pushed magnesium ingot prices up to 16,000 yuan/mt. However, after order delivery, downstream users turned cautious and stood on the sidelines, leading to thinner trading and slight softening of some quotes. Overseas summer breaks kept outside China demand sluggish; FOB offers were stable but actual transactions were sluggish. Dolomite delivered prices remained stable with ample supply. Magnesium powder tracked the initial rise and subsequent decline of magnesium ingot, while magnesium alloy operating rates dropped notably due to the off-season and shrinking end-use demand. Overall, the supply-strong, demand-weak pattern remained unchanged, and magnesium prices are likely to continue moving sideways in the near term.

[SMM Magnesium Express]Today, according to the Shanghai Securities News, Zhiyuan Robotics incorporated magnesium alloy as the load-bearing skeleton in its latest humanoid robot "Far征A3," paired with self-developed high-performance carbon fiber-nylon composite structural components, achieving both weight reduction and energy absorption effects. The robot demonstrated high-dynamic actions such as aerial flips and impact resistance, showcasing the application potential of magnesium alloy in enhancing structural strength and lightweighting for robots. As the industrialization of humanoid robots accelerates, the application prospects of magnesium alloy in robotic structural components are expected to further expand.

In July 2026, magnesium prices fluctuated within a narrow band of RMB 15,650‑16,000/ton, with the monthly average price at RMB 15,835/ton, down 2.55% month‑on‑month.

[Magnesium Ingot Futures Edge Higher, Downstream Purchases on Demand, Upward Momentum Lacking] Today, the magnesium ingot market continued to hold up well. Supply-side EXW prices rose, but the demand side remained sluggish, leaving the market with only small volumes of just-in-time procurement.

[SMM Magnesium Express]Today, Latrobe Magnesium in Australia released the latest progress of its demonstration plant Phase 1B: the project construction has been completed by 50%, the prototype furnace testing has been successfully completed, the core support design has been verified at an operating temperature of 1180 ° C, and a key technical risk has been overcome. The installation of the block pressing system is basically completed and is about to enter debugging. The company maintains its target of producing the first batch of magnesium metal in the second half of the year unchanged. With the steady progress of the project, its low-carbon process route for extracting magnesium metal from industrial waste is expected to be gradually validated, providing new technological options for the diversified layout of the global magnesium supply chain.

[SMM Magnesium Express]Recently, according to the Integrated Media Center of Lanxi City, Lanxi High tech Zone is focusing on building the entire magnesium industry chain and striving to create a "first mover of magnesium good scenes" with high standards. At present, a provincial-level magnesium material professional testing platform has been established in the district, gathering more than 90 professional talents. The pilot base has completed the development of nearly 30 samples and the trial production of more than 4000 products. There are currently 10 magnesium industry projects with a total investment of 2.88 billion yuan. Meanwhile, the East China Light (Magnesium) Alloy Distribution Center, covering an area of over 250 acres, is about to commence construction. With the continuous improvement of the "one hospital, one park, one base" architecture, the cluster development trend of Lanxi magnesium material industry is becoming increasingly evident, and it is expected to become a new highland for technological innovation and scene application of magnesium industry in the Yangtze River Delta region.

[SMM Magnesium Express]According to media reports, Fugu County, the largest magnesium metal production base in China, has led or participated in the release of 17 international, national, industry, and group standards related to magnesium, achieving a leap from product output to standard output. The production capacity and output of magnesium metal in this county have been leading the country for 14 consecutive years. In 2025, it was awarded the title of "Demonstration Base for Research and Innovation of Magnesium Metal Standards". There are more than 10 standards in the research and approval stage, and more than 20 standards are in the preliminary research stage. With the continuous improvement of the standard system, Fugu's discourse power and technological leadership ability in the national magnesium industry are expected to be further enhanced.

[Magnesium ingot offers tick up slightly, but sluggish deals indicate the uptrend is unlikely to sustain] The magnesium ingot market held up well today, with suppliers holding prices firm to around 16,000 yuan/mt. However, demand remained mediocre, and purchases both in and outside China were cautious. Only small volumes of essential demand were followed, and transactions failed to pick up notably.

【SMM Magnesium Market Analysis: Loss of Blue Coal Drives Up Smelting Costs, Domestic Composite Cost of Magnesium Ingot Rises Month-on-month in June】The safety accident at a coal mine in Qinyuan at the end of May directly tightened the supply of raw coal circulation in the region, leading to a rapid surge in market coal prices.

Looking back at China’s magnesium market in the first half of 2026, the supply-over-demand dynamic shifted subtly amid earlier concentrated production shutdowns by magnesium smelters. Tight spot supply and low inventory levels created sound fundamental conditions for a periodic rally in magnesium ingot prices. Coupled with market sentiment stirred by news of surging magnesium alloy demand, speculative demand surged and purchasing sentiment across the market strengthened notably.