Zhongke Yamei Completes Closed-Loop Mg Alloy Process, Cuts Costs 10%, Aims for NEV Component Growth

[Magnesium Ingot Market Stalemate Continues, No Signs of Export Orders Recovering as Expected in the Short Term] Magnesium prices held steady today. Sentiment to hold prices firm was high among primary magnesium smelters, but actual demand failed to pick up. The previously expected recovery in export orders, driven by the end of the overseas summer break, still showed no obvious improvement.

[Magnesium Market in the Doldrums, No Notable Fluctuations at Week’s Start] Today, magnesium ingot prices remained in the doldrums overall. Producers in major production areas held prices firm, but downstream demand follow-through remained weak. The market is expected to continue moving sideways in the short term.

[Magnesium Ingot in the Doldrums, Demand Caps Rebound Room] This week, mainstream quotations for magnesium ingot in major producing areas were 15,800-15,900 yuan/mt, up 100 yuan/mt WoW, while FOB prices in the overseas market weakened in tandem. The Chinese market consolidated at lows overall, with smelting costs providing bottom support and leaving limited further downside room. However, producers’ hold-back-from-selling sentiment showed signs of easing, and low-priced supplies emerged. Downstream users and traders had insufficient orders and remained cautious in procurement, leaving overall trading sluggish. On the export front, the overseas summer break has not yet ended, with limited inquiries from the overseas market and evident push for lower prices from buyers outside China. Upstream, dolomite supply channels were switched, keeping raw material supply ample and prices stable. Downstream magnesium powder and magnesium alloy followed the magnesium ingot in the doldrums, with the magnesium alloy market showing supply-demand weakness and processing fees under pressure. In the short term, magnesium ingot lacks upward drivers and is expected to continue the pattern of moving sideways.