Transaction Recovery Underpins Magnesium Market, Weekly Inventory Continues to Decline [SMM Magnesium Weekly Data]

Brief Commentary on Production and Inventory

1.1 Weekly Production

From May 8 to May 14, the weekly production of sampled magnesium plants nationwide was 23,576 mt, with a weekly operating rate of 77.4%, down 1.8% WoW.

1.1 Weekly Inventory

1. Plant inventory decreased 5.02% WoW this week. Affected by inventory pressure and capital pressure, magnesium ingot smelters showed significantly increased enthusiasm for shipments. End-user plants and traders restocked on dips, and market transactions recovered slightly. Supported by transactions, inventory at some plants declined notably, and overall plant inventory trended downward.

2. Social inventory decreased 1.02% WoW this week. The main reason was that traders had weak willingness to stockpile after the holiday. Combined with production remaining stable, port inventory saw slight destocking, driving overall inventory levels slightly lower.