SMM5 May 22 magnesium ingot spot express: magnesium ingot trading volume growth price up slightly

[Both Domestic and Overseas Markets Under Pressure, Magnesium Ingot Moves Sideways in the Short Term] Today, magnesium ingot quotes in Fugu continued to decline. The magnesium ingot market in China and overseas is under pressure simultaneously. The market is waiting for stockpiling to be released from mid-to-late September to before the National Day holiday. In the short term, prices are likely to move sideways.

【SMM Magnesium Flash】Recently, the world's first mass-produced semi-solid magnesium alloy CCB instrument panel crossbeam was rolled off the production line in Wansheng Economic Development Zone, Chongqing, developed and manufactured by Chongqing Boao Magnesium Aluminum Metal Manufacturing Co., Ltd. Compared to traditional steel structures, this product reduces weight by 50%, and compared to aluminum alloys, it reduces weight by 30% to 40%. The integrated molding structure is denser, significantly enhancing strength and resistance to deformation, filling the global gap in the mass production of semi-solid magnesium alloy CCB. With the breakthrough in mass production of this technology, the application of magnesium alloy in core safety structural components of automobile cockpits is expected to accelerate further, driving the lightweight development of automobiles to a higher level.

[Maintenance Drives Supply Contraction, Magnesium Market Inventory Diverges with Weakness] This week, domestic primary magnesium enterprise operating rates pulled back, with multiple smelters initiating maintenance and production cuts. Short-term raw material supply contracted somewhat, and production is expected to remain at low levels going forward. Inventory showed clear divergence, with smelter plant inventory edging higher. Despite maintenance reducing output, suppliers in the market dumped goods at low prices, and procurement orders flowed more toward circulating social inventory, causing passive inventory buildup at plants. Social inventory shifted to destocking, as traders took advantage of market conditions to clear earlier low-priced stockpiles. Downstream buyers exhibited notable fear of high prices, with procurement limited to rigid demand and no concentrated stockpiling activity. The continuous release of low-priced supply weighed on prices, compounded by the market's rush to buy amid continuous price rise and hold back amid price downturn mentality, leaving magnesium prices under pressure in the short term.