National Magnesium Inventory Down 3.52% MoM, Prices Hit Year-Low Prompting Smelter Shutdowns

[SMM survey: From seat armrests to electric drive housings: The penetration pace of magnesium alloys in automotive lightweighting is accelerating] Recent industrial developments in magnesium alloys for automotive lightweighting have notably intensified. From the dense capacity expansions by parts enterprises and successive breakthroughs in semi-solid die-casting processes to the long-term usage expectations released by foreign automaker giants, signals across all segments of the industry chain indicate that magnesium alloys are at a critical stage of transition from "pilot installation" to "large-scale application." Although short-term actual procurement growth remains limited and current magnesium alloy processing fees stay subdued, the continuous overcoming of technical bottlenecks and the forward-looking deployment by leading automakers are accumulating sufficient momentum for medium and long-term demand release.

[SMM Magnesium Weekly Review: Magnesium Industry Chain Diverges Weakly During the Week, Decline Slows but Recovery Lacks Momentum] This week, the magnesium industry chain remained in the doldrums overall. On the raw material side, the Wutai dolomite mine halted production, and enterprises eased supply by purchasing externally, keeping ore prices stable. Magnesium ingot prices in China continued to slide, with the decline slowing near the cost line and prices consolidating at lows. Meanwhile, export FOB prices followed the domestic decline, and overseas inquiries only boosted sentiment, with no actual orders placed yet. Magnesium powder and magnesium alloy remained under pressure simultaneously, as downstream demand from automobiles, EVs, and steel desulfurization stayed weak. Deep-processing enterprises cut production and destocked, with processing fees showing little improvement. In the short term, prices are likely to remain in the doldrums.

[SMM Magnesium Survey: Financing Advances Alongside Approval Hurdles, European Magnesium Projects Face Community Resistance] Latrobe Magnesium extended its rights issue to October 26, with funds earmarked for demonstration plant commissioning and a US project feasibility study. Verde Magnesium secured strategic status under the EU CRMA for its processing segment, becoming Europe's only fully integrated magnesium project. The referendum date for the MPI magnesium ore project in Romania has been set, while local approvals face substantial resistance.