Analysis of China's Magnesium Product Imports and Exports in May 2024 [SMM Analysis]

Published: Jun 25, 2024 17:16 (GMT+8)

Source: SMM

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According to customs data, in May 2024, China's magnesium ingot exports were 20,836 mt, down 11.0% MoM, up 26.2% YoY, with cumulative exports up 36.8% YoY.

In terms of export destinations, the main countries for domestic magnesium ingot exports in May 2024 were Netherlands, India, South Korea, Japan, and the UAE, accounting for about 53% of total exports. Among them, exports to the Netherlands totaled approximately 6,140 mt, accounting for 25%, up 2.3% MoM, up 8.3% YoY; exports to India were 1,978 mt, accounting for 8%, down 2.3% MoM, up 28.9% YoY; exports to South Korea were 1,904 mt, accounting for 8%, up 23.3% MoM, up 94.9% YoY; exports to Japan were 1,578 mt, accounting for 6%, up 6.9% MoM, up 40.5% YoY; exports to the UAE were 1,492 mt, accounting for 6%, up 1.2% MoM, up 373.6% YoY.

From the perspective of export destinations, in 2024, Guangdong Province ranked first in China's magnesium ingot exports with 14,957 mt; Shanxi Province ranked second with 1,984 mt; and Zhejiang Province ranked third with 1,447 mt.

Among other exported magnesium products, in May 2024, China's magnesium alloy exports were 6,482 mt, down 17.57% MoM and down 13.26% YoY, with cumulative exports down 11.86% YoY. In May 2024, China's magnesium powder exports were 7,170 mt, down 7.26% MoM and up 12.17% YoY, with cumulative exports up 26.2% YoY. Overall, the export volume of magnesium products in May 2024 slightly increased. There are two reasons for the increase in export volume: first, due to price factors, the sharp rise in magnesium ingot prices in April caused traders who had taken low-price orders with a speculative mindset to be unable to deliver on time, forcing them to apply for a delay until May, resulting in an increase in May's magnesium ingot export volume together with previous orders. Second, the expectation of an increase in ocean freight in June, together with the price increase caused by the issuance of energy-saving and carbon reduction policies, led to some overseas orders being delivered in advance.

In June, the fermentation of the Red Sea incident complicated the market environment, with some regions facing not only a shortage of ships but also a shortage of containers, severe port congestion, and high ocean freight rates. The early June ocean freight adjustment further exacerbated the cautious sentiment of overseas customers, reducing order volumes. It is expected that the export volume of magnesium products in June will slightly decrease.

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