SMM Analysis On China October Magnesium Powder Production And November Forecast

According to SMM data, China's magnesium powder production in October 2024 decreased by 1.4% MoM. In October, magnesium powder enterprises generally maintained normal production, with some enterprises lowering their operating rates. Due to the sluggish orders for magnesium powder enterprises and strong wait-and-see sentiment among downstream enterprises amid the fluctuating magnesium ingot prices, some magnesium powder enterprises continued to maintain low production levels. A representative from a large magnesium powder enterprise stated that the weak domestic economic situation has led to thin steel mill profits and frequent changes in magnesium ingot prices, resulting in cautious procurement attitudes downstream. Considering that low-priced magnesium ingots may stimulate an increase in magnesium powder orders, SMM expects domestic magnesium powder production in November to remain at 8,000 mt.