Guangdong Hongtu Invests $274M in Magnesium Alloy Die-Casting Subsidiary for Auto Lightweighting

[Cost Support Lifts Magnesium Ingot Quotations; Weak Demand in Domestic and Overseas Markets May Keep Prices Consolidating] Mainstream quotations for magnesium ingot in Fugu stand at 16,050-16,150 yuan/mt, with FOB prices at $2,280-2,380/mt. Domestic producers are actively holding prices firm on cost support, but downstream purchases remain cautious and high-price deals are hard to close. The overseas market is rising passively in tandem with China without any substantial improvement in ex-China demand. Magnesium prices are likely to consolidate within a range in the short term.

【SMM Magnesium Flash】 On September 2, it was reported that the magnesium melting and casting production line of the deformed magnesium alloy plate production line project (Phase I) of Chinalco Luoyang Copper Processing Co., Ltd. successfully produced the first qualified magnesium alloy ingot, achieving full-line connectivity in the entire production process of magnesium plates. This marks that the company officially possesses the capability for full-process trial production and large-scale production of magnesium plates, filling a key gap in the self-reliance and controllability of high-end magnesium materials in aerospace, defense, and military industries. With continuous process optimization and gradual release of production capacity, China's self-reliance capability for high-end deformed magnesium alloy plates is expected to further improve.

[Rising magnesium ingot production costs push up prices, sluggish demand constrains rebound] Fugu magnesium ingot offers in both domestic and overseas markets rose along with higher costs, but end-use demand in China and outside China failed to follow through, limiting upward momentum. In the short term, magnesium ingot prices are expected to continue moving sideways within a range, with attention on downstream restocking and production cuts by producers.