Output of Magnesium Alloy Stood at 28,700 mt in April in China

SHNAGHAI, May 9(SMM) -  The domestic output of magnesium alloy stood at 28,700 mt in April, up 12.50% MoM and down 14.68% YoY, according to SMM statistics. The output totalled 99,200 mt, a year-on-year decrease of 26.32%. The average operating rate of magnesium alloy industry stood at 50.59% in April, up 12.5% MoM and down 18.69% YoY. According to the domestic magnesium alloy factory, the magnesium alloy market picked up in May with increasing output of large factories. The domestic demand was less than expected and the impact of the pandemic on output of automobiles affected the downstream demand for restocking to a certain extent. According to the Bureau of Statistics, output of automobiles of China in March fell by 5.16% on the month. The declining demand for auto parts caused by the stagnation in the automobile industry chain may continue to affect the domestic demand for magnesium alloy. Output of magnesium alloy will be lack of upward momentum by only increasing 29,000 mt in May.