Production and Operating Rates Both Increased, Divergence in Trends Between Producer's Warehouse and Social Inventory [SMM Magnesium Weekly Data]

Weekly Production

From September 5 to September 11, the weekly production of sampled magnesium plants nationwide reached 19,057 mt, with an operating rate of 62.5%, up 1.0% WoW.

Weekly Inventory

1. In-factory inventory fell 9.6% WoW this week. Market transactions performed well, and supported by demand for magnesium powder and foreign trade, in-factory inventory showed a downward trend.

2. Social inventory decreased 4.31% WoW. Orders on hand for traders have accumulated, but as prices remain in a downward trend, most enterprises are cautious in procurement and have not yet restocked on a large scale, mainly focusing on delivering existing orders and consuming original inventory. Meanwhile, the recent concentration of shipping schedules for the export rush has also accelerated inventory digestion.