China's Weekly Magnesium Output Reaches 22,140 Tons, Operating Rate Down 5.70% MoM

【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.