Lump Coal Auction Prices Drop by 254.11 Yuan/Ton at Hongliulin Mine

【SMM Magnesium Flash】 Recently, Latrobe Magnesium (LMG) of Australia announced that Robert Stein will officially assume the position of CEO on October 1st. He pointed out that there is a huge gap in independent primary magnesium supply outside China, with China accounting for about 90% of global production. Magnesium has been listed as a critical mineral by many countries. As one of the few advanced independent primary magnesium projects overseas, LMG adopts a patented hydrometallurgical process to extract high-purity magnesium oxide from brown coal ash and has secured an exclusive distribution agreement with a US distributor and support from Australian and US financial institutions. It will then comprehensively review its financial and commercialization paths, which is expected to accelerate project implementation and provide new options for diversifying the western magnesium supply chain.

【SMM Magnesium Flash】 On September 9th, Wuchan Zhongda disclosed at the 2026 semi-annual performance briefing that its Anhui Magnesium Industry's project, with an annual output of 5 million magnesium-aluminum alloy die-casting structural parts, has a total investment of 1 billion yuan. Located in Wuhu, Anhui, the project possesses full-process automotive-grade production capabilities from melting to testing. The project has purchased 12 sets of large-scale die-casting units, directly meeting the expansion needs of customers such as SAIC Motor, Sige New Energy, and United Power. It has also conducted joint development with customers on "replacing aluminum with magnesium", and multiple projects have entered the sample testing phase. As production capacity is gradually released, Wuchan Zhongda's magnesium alloy die-casting business is expected to accelerate its expansion, facilitating its transformation into a provider of lightweight comprehensive solutions.

[Cost Support Loosens and Inventory Diverges, Magnesium Ingot Transactions Remain Sluggish with Consolidation] Quotes for all grades of magnesium ingot were basically flat. The pullback in coal loosened cost support. Smelter inventory sentiment diverged, downstream users purchased as needed, and export circulation was hindered. Overall transactions were sluggish, and foreign trade of magnesium ingot is expected to continue consolidating in the short term.