In Q3, the total export volume of magnesium ingots remained stable, while exports to the Netherlands were halved. What are the reasons? [SMM Analysis]

According to customs data, in September 2024, China's magnesium product exports amounted to 33,400 mt, down 9.97% MoM, up 11.3% YoY. In September 2024, China's magnesium ingot exports were 19,239 mt, down 4.97% MoM, up 37.40% YoY, with cumulative exports up 25.61% YoY.

From the perspective of export destinations, in September 2024, the main destinations for China's magnesium ingot exports included the Netherlands, India, South Korea, Canada, and Japan, accounting for about 57% of the total export volume. Rotterdam in the Netherlands, as an important export hub in Europe, is a key destination for China's magnesium ingots. Notably, in Q3, the total export volume of magnesium ingots to the Netherlands decreased by 35.0% QoQ from Q2. On one hand, this was due to the impact of the summer break in Europe. On the other hand, according to insiders in the magnesium market, the recent decline in the operating rate of European aluminum plants, concerns over geopolitical tensions leading to fluctuations in European natural gas prices, and weak end-use demand due to macro factors have significantly reduced the total export volume of magnesium ingots to the Netherlands.

From the perspective of export average prices, at the beginning of 2024, the impact of the semi coke rectification policy weakened, and the gradual resumption of production by magnesium ingot smelters caused a supply-demand imbalance. In September, the average export price of magnesium ingots fell nearly 10% MoM.