SMM Analysis Of Magnesium Alloy In July And Forecast For August

According to SMM data, China's magnesium alloy production in July 2024 was 31,700 mt, up 20% YoY.

In July, the operating rates of downstream processing enterprises for magnesium alloy decreased. The competition in processing fee quotations for magnesium alloy orders intensified, but the high aluminum prices significantly highlighted the cost-effectiveness of magnesium alloy, leading to a steady increase in end-user attention. Major magnesium alloy producers were operating at near full capacity. The reduction in production this month was due to some magnesium alloy producers scheduling maintenance during the high summer temperatures. The continued low-level consolidation of raw material magnesium ingot prices significantly highlighted the cost-effectiveness of magnesium alloy. Orders for magnesium alloy are expected to recover in August, and considering the gradual release of new production capacity from major magnesium alloy producers, SMM expects magnesium alloy production in August to recover to 33,000 mt.