Shaanxi Magnesium Ingot Costs Rise 1.73%, Industry Sees Wider Losses Amid High Raw Material Prices

【SMM Weekly Magnesium Output Express】From October 9 to October 15, the weekly output of national sample magnesium plants reached 22,176 tons, with a weekly operating rate of 72.76%, a month-on-month decline of 0.88%. According to research, a total of two primary magnesium smelting enterprises suspended production for maintenance and one primary magnesium smelting enterprise reduced output during the National Day holiday. However, the reduction brought by the current magnesium plants has been offset by the increment from other magnesium plants that increased output. The overall production reduction of magnesium plants is negligible, which is insufficient to alleviate the current pattern of oversupply. According to SMM, a number of primary magnesium smelting enterprises in major producing regions currently have maintenance plans again due to the inversion of cost and price, and the subsequent primary magnesium output is expected to decline.

【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.