SMM Analysis Of China Magnesium Alloy Production In May And Forecast For June

According to SMM data, China's magnesium alloy production in May 2024 was 32,150 mt, up 15.1% YoY.

In May, downstream processing enterprises for magnesium alloy had positive operating rate, and the sharp rise in aluminum prices significantly highlighted the cost-effectiveness of magnesium alloy. Orders for magnesium alloy slightly improved, with large manufacturers operating at full capacity, leading to a 4% MoM increase in magnesium alloy production. The reasons for May's production growth are: downstream and end-user die-casting plants restocked as needed, and some magnesium alloy producers reached full production capacity. In May, magnesium alloy production rose by 15% MoM. Due to the sluggish domestic economy, overall demand in the magnesium alloy market remained weak. SMM expects that magnesium alloy production in June will decline to 28,000 mt.