US Initiates 4th Anti-Dumping Sunset Review on Chinese Magnesium Imports, Impacting Future Exports

【SMM Magnesium Flash】On October 16th, Latrobe Magnesium announced its latest progress, stating that the installation progress of Phase 1B of its demonstration plant in Victoria has reached 95%, with 35% of the commissioning completed. The company remains committed to its goal of producing the first batch of magnesium metal with a purity exceeding 98% by the end of 2026. Simultaneously, the company is advancing its plan to build a 50,000-ton magnesium plant in South Carolina, USA, and has secured a total of 32,000 tons/year of non-binding intention to purchase. As of the end of September, the company held AUD 3.4 million in cash and is currently undergoing a fully underwritten share placement financing of AUD 3.4 million, with the deadline for share placement extended from October 19th to October 26th. As the commissioning of the demonstration line progresses, the industrialization verification process of its low-carbon magnesium extraction technology is expected to accelerate further.

【SMM Magnesium Flash】On October 10th, the European Commission announced a new round of strategic projects for critical raw materials, with a total of 46 projects covering 15 of the 17 strategic raw materials, including magnesium. The selected magnesium project is the processing project developed by Verde Magnesium in Budureasa, Romania. The company has previously obtained the qualification for magnesium mining projects and aims to become the first primary magnesium producer in Europe in 25 years. It adopts the thermite reduction process and plans to restart the mine by the end of 2026 and build a magnesium smelting plant with an annual output of 30,000 tons by 2030. This round of 46 projects is expected to raise approximately 21.1 billion euros. Currently, China supplies 97% of the magnesium to the EU. This move aims to promote supply chain diversification and reduce dependence on a single source.

[Magnesium Prices Continue to Hit Bottom Amid Weakness; Supply-Demand Pattern Unlikely to Change in Short Term] This week, the magnesium industry chain remained broadly in the doldrums. On the raw material side, the Wutai dolomite mine halted production, and after enterprises purchased externally to supplement supply, the shortage eased, with ore prices holding steady. Magnesium ingot prices in China continued to slide, with the decline slowing near the cost line as prices consolidated at lows. Meanwhile, export FOB prices followed the domestic decline, and overseas inquiries only lifted sentiment, with no actual deals concluded yet. Magnesium powder and magnesium alloy came under pressure simultaneously, as downstream demand from automobiles, EVs, and steel desulfurization remained weak. Deep-processing enterprises cut production and destocked, and processing fees showed little sign of improvement. In the short term, prices are likely to remain in the doldrums.