[SMM Domestic Analysis: Domestic Trade Cushioning Effect Emerges, Narrowing Domestic Magnesium Price Fluctuations, Optimized Demand Structure Drives Stable Magnesium Price Movement]

Qualitative Shift in Demand Side: NEVs + Electric Two-Wheelers Dual-Drive Breakthrough in Magnesium Alloy Application Boundaries

In 2025, the magnesium alloy industry experienced explosive growth, with NEVs, humanoid robots, and electric two-wheelers collectively driving global demand to exceed 1 million mt. Magnesium alloy structural components for NEVs, electric two-wheelers, and humanoid robots contributed 90% of incremental demand, replacing cyclical demand such as traditional metallurgical additives. Currently, NEVs remain the dominant driver, but the trend of multi-sector synergistic growth is evident.

NEVs: In China's NEV sector, the relatively mature application of magnesium alloy die-casting technology is mainly for small components. Current magnesium alloy usage per vehicle stands at only 5 kg, but technological breakthroughs in automotive lightweighting have accelerated over the past two years. Dozens of magnesium alloy auto parts have been developed, including steering wheel frames, instrument panel brackets, and more. Among these, magnesium alloy steering wheel frames are already used in over 80% of vehicles, while large-sized components like instrument panel brackets, center console brackets, display brackets, and air conditioning brackets are increasingly adopted in high-end brand vehicles. Thus, the advancement of magnesium alloy applications in NEVs will significantly boost market demand.

Electric Two-Wheelers: Magnesium alloy technology has achieved deep penetration in the electric two-wheeler sector. Top-tier electric two-wheeler manufacturers have achieved overall weight reduction through lightweight components such as handlebars, rear racks, and footrests. According to SMM, some magnesium die-casting manufacturers have received orders from brands like Yadea, Aima, and Luyuan. A Guangdong-based magnesium die-casting manufacturer reported receiving orders for 20,000 sets of magnesium alloy parts for electric two-wheelers this month, with alloy demand in August showing notable YoY improvement. Magnesium price volatility narrowed to a historic low of 12%, driven by the strategic optimization of domestic demand structure.

Domestic Trade Cushioning Effect Emerges, Narrowing Domestic Magnesium Price Fluctuations, Optimized Demand Structure Drives Stable Magnesium Price Movement

As of press time, the high-low price spread in 2025 narrowed from 4,350 yuan to 2,400 yuan, with magnesium price volatility shrinking 55% YoY, driven primarily by the strategic optimization of domestic demand structure. The structural upgrade of technical domestic demand replacing resource exports has facilitated stable magnesium price movements.

Specifically, in 2024, domestic and foreign trade demand for primary magnesium was evenly split at 50% each. However, due to the concentrated procurement nature of foreign trade demand, magnesium prices frequently fluctuated in response. On the foreign trade front, China's cumulative exports of various magnesium products from January to July 2025 totaled approximately 258,100 mt, down 4.58% YoY. Breakdown: magnesium ingot exports (143,700 mt, down 7.88% YoY), magnesium alloy exports (55,700 mt, down 0.36% YoY), and magnesium powder exports (44,100 mt, down 11.27% YoY). On the domestic trade front, the expansion of downstream magnesium alloy applications has provided strong support for primary magnesium demand, and the optimization of domestic-foreign trade demand structure is expected to stabilize magnesium price movements.