Demand Weakens in Tandem Both at Home and Abroad, With Costs Providing a Floor, Magnesium Prices Consolidate at Lows [SMM Magnesium Ingot Spot Flash]

[SMM Magnesium Weekly Review: Supply Recovery Releases Output; Weak Demand Keeps the Magnesium Market in the Doldrums] The mainstream quotation for 99.90% magnesium ingot from main production areas stood at 15,750‑15,850 yuan/mt this week, down 50 yuan/mt WoW, with FOB prices reported at $2,240‑2,340/mt, averaging $2,290/mt. Magnesium ingot prices moved lower in a stepwise manner during the week. Production resumptions at enterprises under maintenance increased supply, lifting in-factory inventory pressure. Some producers made shipments at reduced margins, but the cost side limited the downside. Inquiries from outside China picked up somewhat, yet clients mainly drew down their own inventories, resulting in limited order growth and pronounced pressure for lower prices. Combined with disruptions from new export regulations, exchange rates, and ocean freight rates, traders were cautious in taking orders. Upstream dolomite prices remained flat; with mines idled, enterprises sourced supplies through multiple channels, keeping overall resources ample. Downstream magnesium powder and magnesium alloys followed the weakness in magnesium ingot. Processing fees for magnesium powder came under pressure, with steel mills making only just-in-time procurement. Magnesium alloys faced abundant spot inventory and aggressive competition among peers, while demand was further squeezed by high‑temperature maintenance at die‑casting plants and substitution by plastics in two‑wheelers, keeping processing fees under persistent pressure. In the short term, cost support and sluggish demand will continue to wrestle, leaving magnesium prices to consolidate on a weak note, awaiting order recovery after the overseas summer break.

【SMM Magnesium Flash】This week, the social inventory of magnesium ingots increased by 0.71% month-on-month, showing a pattern of slight accumulation. The inventory at Tianjin Port decreased slightly, with port ex-warehouse mainly relying on early stock orders and a small number of new orders for support. New overseas orders were limited, lacking sustained momentum for ex-warehouse. This week, magnesium ingot prices declined weakly, with traders showing a strong sentiment of buying when prices rise but not when prices fall, and a weaker willingness to speculate and stock up, leading to a slowdown in the pace of stock-up procurement. However, there are still some early stockpile transfers and document submission stock-up operations in Shaanxi and Shanxi, resulting in a slight increase in inventory pressure. Overall, the current social inventory pressure still exists. The price volatility coupled with no significant recovery in demand has suppressed the pace of traders' procurement and stock-up. In the future, it is necessary to pay close attention to the actual release of overseas stock-up orders in September.

【SMM Magnesium Flash】Recently, the environmental impact assessment (EIA) for the first time was publicized for the 24,000-ton annual magnesium alloy new material project of Anhui Guomei New Material Technology Co., Ltd. The project, located in Duji District, Huaibei City, will establish production lines for melting and casting, semi-solid injection molding, die-casting, CNC machining, and surface treatment, and will be accompanied by a research and development center for academician workstations. Relying on the technological achievements of Professor Jiang Bin's team from Chongqing University, the company aims to build an intelligent green production base for the entire magnesium alloy industry chain. The products are primarily targeted at lightweight applications in new energy vehicles, aerospace, intelligent robots, and other fields. With the completion and commissioning of the project, Anhui's magnesium alloy deep processing capabilities are expected to be further enhanced.