China Magnesium Ingot Exports Diverged on a MoM and YoY Basis in October

[Magnesium Ingot Prices Hold Steady and Consolidate, Pre-Holiday Restocking Winds Down with Cooling Transactions] Some producers have ended their hold on spot cargo prices and selling restraint, while some are advancing National Day futures sales, with the low price of 15,700 yuan/mt mostly being futures quotes. Pre-holiday restocking is in its final stage with transactions turning sluggish, trading activity cooling, and prices consolidating.

[Supply-Demand Tug-of-War Persists, Magnesium Ingot Market Under Pressure as Peak Season Falls Short] Some producers in China have periodically released small volumes of low-priced supply, while stockpiling for the two festivals only drove a modest recovery in transactions. With a lack of demand growth both in China and overseas, magnesium prices continue to consolidate on a subdued note, supported by firm pricing and cost floors.

【SMM Magnesium On September 22, Yongmaotai announced that it plans to raise no more than 998 million yuan through a private placement. Of this amount, 520 million yuan will be invested in the intelligent manufacturing project of magnesium alloy precision components. Once the project reaches its designed capacity, it will be able to produce 4.5 million magnesium alloy automotive parts and 350,000 sets of lightweight components for intelligent robots annually. Currently, the company has established more than 20 magnesium alloy die-casting production lines, covering models ranging from 650 to 7000T, and has ordered 10 semi-solid equipment units. It has also established cooperation with major automakers such as XPeng and BYD. With the implementation of the private placement project, the production capacity of magnesium alloy precision manufacturing is expected to accelerate, and lightweight components for robots may become a new growth point.】