Weekly Magnesium Output Rises 4.11% as Plants Resume Production, But Future Uncertainty Looms

【SMM Weekly Magnesium Inventory Update】This week, the national inventory of primary magnesium smelting enterprises decreased by 0.91% month-on-month, and the inventory at production sites showed a downward trend this week. Magnesium prices continued their decline from last week. This week marks the last restocking window ahead of the two festivals, with transactions concentrated and released in the first half of the week, performing better overall than the first half of the month; some manufacturers took the opportunity to launch futures presales, leading to a slight drop in market inventory accordingly.

【SMM Magnesium Flash】This week, the social inventory of magnesium ingots increased by 1.55% month-on-month, continuing the trend of accumulated inventory. The increase in inventory mainly stems from two aspects: Firstly, some traders anticipate an upward opportunity for magnesium prices after the holiday, and prepare stocks in advance. Secondly, some traders believe that the market is volatile and the downward space is limited, so they slightly hoard goods. However, the actual downstream demand has not significantly improved compared to last week. Although a small number of traders have cleared inventory at low prices, this behavior is weak in sustainability and the scale of shipments is limited, failing to reverse the trend of accumulated inventory. Regarding the future trend of inventory, the focus is on observing the procurement and delivery status before and after the double holidays.

[SMM Magnesium Weekly Review: Pre-Holiday Stockpiling Falls Short of Expectations, Magnesium Industry Chain Diverges and Runs in the Doldrums] This week, the magnesium industry chain showed a divergent and weak-stable trend. On the supply side, the large dolomite mine in Wutai, Shanxi remained shut down, tightening the supply of high-grade ore in the region. Enterprises expanded procurement channels externally, and after external supplies arrived, the overall supply pressure for dolomite eased, with quotations remaining stable. Primary magnesium producers maintained basically stable output, while inventories continued to accumulate. As the two holidays approached, some producers cut prices to recover funds, and magnesium prices hit bottom before stabilizing with support from costs. Magnesium powder and magnesium alloy followed raw material prices and ran in the doldrums, while downstream processing enterprises saw finished product inventories rise and reduced operating rates to ease shipment pressure.