SMM Analysis on China November Magnesium Powder Production and December Forecast

According to SMM data, China's magnesium powder production in November 2024 increased by 1.5% MoM. In November, most magnesium powder enterprises operated normally, but the operating rates of some enterprises decreased. Due to low order volumes and fluctuating magnesium ingot prices, downstream enterprises' wait-and-see sentiment intensified, causing the production of some magnesium powder enterprises to remain at low levels. A representative from a large magnesium powder enterprise pointed out that the weak domestic economy, thin steel mill profits, and frequent fluctuations in magnesium ingot prices made downstream procurement more cautious. However, with the possibility of low-priced magnesium ingots stimulating a rebound in orders, SMM forecasts for December that domestic magnesium powder production will remain stable.