China’s magnesium ingot output shrank 14% in April

[Persistent weak demand for magnesium ingot pulls transaction center slightly lower] The magnesium ingot market in China showed pronounced weakness, with the transaction center pulling back to 15,700 yuan/mt. Smelters' willingness to hold prices firm weakened and low-priced supply increased. Combined with sluggish demand and mounting inventory pressure, market conditions are unlikely to improve in the short term.

[Insufficient demand support; magnesium ingot remains in the doldrums in the short term] The magnesium ingot market is in the doldrums, with stable supply but weak domestic and overseas demand. The double-festival market performance fell short of expectations and is unlikely to see significant fluctuations again. The market turning point is expected after the National Day holiday.

【SMM Weekly Magnesium Output Flash Report】From September 18 to September 24, the weekly output of national sample magnesium plants reached 23,177 tons, with a weekly operating rate of 76.04%, up 4.11% month-on-month. According to research, most of the primary magnesium smelting enterprises that carried out maintenance in the early ten days of this month had a maintenance period of 5 to 10 days, and all of them have successively ignited furnaces or resumed production to produce magnesium ingots since last week, leading to a slight rebound in the market supply of magnesium ingots; another smelting enterprise in Shanxi plans to ignite and resume production next week. However, the supply increment may be difficult to sustain, as some enterprises have stated that they will suspend production for maintenance again after the National Day, mainly due to excessively high production costs. Amid the intertwining of production resumption and maintenance, the subsequent trend of primary magnesium output remains unclear.