SHANGHAI, Jul 28 (SMM) - According to customs data, China magnesium ingot exports stood at 25,285.7 mt in June, up 8.1% MoM and 10.3% YoY. The exports totalled 141,652 mt from January to June, an increase of 11% YoY.
Compared with 2021, the overall demand for magnesium ingots in Europe is moderate, and the export increase was mainly contributed by other continents, especially North America and South America.
According to data released by the Association of European Automobile Manufacturers (ACEA) on July 16, the European passenger car sales rose 13% YoY to 1.28 million units in June. The combined car sales in the European market reached 6.49 million units in the first half of 2022, up 27% year-on-year, but still well below the pre-pandemic levels. Compared with two years ago, European car sales contracted by nearly 2 million units in the first half of the year.
According to SMM statistics, the cumulative export volume of China magnesium ingots showed a gradual growth trend during the first half of the year from 2020 to 2022. However, the growth this year is not necessarily a sign of stronger demand. It could be the result of overstocking overseas due to the magnesium ingot supply crisis back in 2021. According to the feedback from overseas magnesium ingot traders, it is understood that overseas orders have dropped sharply in July. Except for the possible cause of the summer vacation, it is also partly caused by the downward trend of magnesium prices, which has led to the downstream staying wait-and-see. Considering that the overseas summer break will last until mid-to-late August, there is a possibility of downward adjustment in the export volume of magnesium ingots in July and August.