Magnesium Plant Inventory Pressure Highlighted, Operating Rates Remained Stable This Week [SMM Magnesium Weekly Data]

Weekly Production

During November 1–6, the weekly production of sampled magnesium plants nationwide reached 22,280 mt, with an operating rate of 73.1%, up 3.3% WoW.

Weekly Inventory

1. In-factory inventory rose 4.8% WoW. Primary magnesium smelters maintained firm offers supported by cost pressures, and magnesium prices increased by 200 yuan/mt in a single day due to rising coal prices. However, most downstream buyers showed strong wait-and-see sentiment, with market procurement largely limited to just-in-time procurement. Overall market transactions remained subdued, and some smelters saw minor inventory buildup.

2. Social inventory climbed 4.41% WoW. Minor inventory accumulation occurred in key regions such as Tianjin and Shanxi, with both trader and factory inventories staying at relatively high levels. Nevertheless, persistently weak overseas orders have led traders to generally adopt a cautious approach, purchasing as needed.