Magnesium Plant Maintenance Drags Weekly Output; Strong Supply and Weak Demand Sustain Inventory Buildup [SMM Magnesium Weekly Data]

Published: Jul 17, 2026 17:46

Save

[Magnesium Plant Maintenance Dragged Down Weekly Output, Supply Strong and Demand Weak with Continuous Inventory Buildup] This week, the magnesium ingot market in the main production areas retreated after a rapid rise. At the beginning of the week, maintenance positives supported prices, but high downstream inventories and fear of high prices suppressed transactions, with some producers offering discounts to sell, putting magnesium prices under pressure and causing them to weaken. Tianjin port FOB prices passively followed the decline in China’s EXW prices, as sluggish demand during the summer break outside China and elevated ocean freight rates suppressed deals. Dolomite prices were stable, providing limited cost support. Magnesium powder and magnesium alloy prices first declined and then stabilized, following the trend of magnesium ingot. Downstream sectors such as steel mill desulfurization, titanium sponge, and die-casting enterprises entered the off-season, with transactions remaining sluggish, leaving the oversupply pattern unchanged. In the short term, the magnesium market will continue to move sideways.

Production and Inventory Brief Review

1.1 Weekly Production

From July 10 to July 16, weekly production of sampled magnesium smelters nationwide was 22,729 mt, with a weekly operating rate of 74.57%, down 2.95% WoW. According to the survey, this week multiple primary magnesium smelters entered a centralized maintenance shutdown period, and the industry's overall operating rate continued to pull back. Since this week, some primary magnesium smelters began to resume production, but considering some smelters still had maintenance plans in late July, primary magnesium production is expected to hit bottom and stabilize.

1.2 Weekly Inventory

1. This week, producer inventory edged up 1.78% WoW; producer inventory at domestic magnesium smelters edged up 1.78% WoW. Supply side, multiple primary magnesium smelters in the main producing areas underwent centralized maintenance shutdowns, significantly reducing the industry's spot magnesium metal supply. Demand side, market procurement demand was also sluggish, pressured by both overseas summer holidays and the downstream die-casting industry off-season. As the digestion of industry output was under pressure, producer inventory still showed a rebound trend.

2. This week, social inventory grew 3.4% WoW, showing an overall inventory buildup trend. There were two main reasons. First, influenced by the news of magnesium ingot smelters' maintenance shutdowns in the main producing areas, some traders stocked up appropriately. However, both in and outside China markets were in the demand off-season, new orders were limited, and overall shipments were few except for some delivery needs. Second, ocean freight rates stayed high and exchange rate fluctuations compressed export profits. Downstream customers clearly pushed for lower prices, traders' willingness to sell was low, and cargo pick-up pace slowed down. Purchased magnesium ingots were mostly accumulated in warehouses in Shaanxi and Tianjin port. Overall, downstream demand digestion was insufficient, destocking pace was slow, and social inventory continued the buildup trend.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Aug 14, 2026 18:01

Magnesium Ingot Weekly Price Rose, Upstream Support Strong, Downstream Follow-up Insufficient, Upside Room Limited [SMM Magnesium Weekly Data]

[Weekly Magnesium Ingot Prices Rise on Strong Upstream Support; Insufficient Downstream Follow-Through Limits Upside Room] This week, mainstream quotations for magnesium ingot in major producing areas were 15,900-16,000 yuan/mt, up 100 yuan/mt WoW, with FOB prices at $2,250-2,350/mt. This round of magnesium ingot price gains was driven by three factors: supply-side maintenance-related production cuts, cost push from coal and ferrosilicon, and concentrated delivery and restocking by traders. However, after the price increase, downstream fear of high prices emerged and transactions returned to mediocre levels; foreign trade remained weak, constrained by exchange rate fluctuations and the uncertain recovery of summer break orders. Upstream dolomite prices were stable, with sufficient supply from multiple channels; downstream magnesium powder and magnesium alloy prices followed the increase, but demand follow-through was insufficient. Magnesium alloy processing fees remained under pressure due to ample inventory, the impact of non-standard supply sources, high-temperature maintenance at die-casting enterprises, plastic substitution in two-wheelers, and other factors. In the short term, cost support is pitted against weak demand, and magnesium prices continue to move sideways.

Aug 14, 2026 18:01

Aug 14, 2026 09:20

Magnesium Prices Rise Due to Supply Cuts, Cost Hikes; Demand Weakness Limits Further Gains

【SMM Weekly Magnesium Review】This week, the mainstream offer of magnesium ingots in major production regions stands at RMB 15,900-16,000/ton, up RMB 100/ton week on week, with FOB offer at USD 2,250-2,350/ton. This round of magnesium ingot rally is driven by three factors: supply-side maintenance-led production cuts, rising costs of coal and ferrosilicon, and concentrated order fulfillment and restocking by traders. However, after the price hike, downstream players have developed reluctance to chase high prices, leading to dull transactions; the foreign trade sector remains weak, constrained by exchange rate fluctuations and unclear recovery of orders amid the summer break. The price of upstream dolomite stays stable with sufficient supply from multiple channels; downstream magnesium powder and magnesium alloy follow the price hike but lack sufficient demand support. For magnesium alloy, processing fees remain under continuous pressure due to ample inventory, impact of non-standard supplies, high-temperature maintenance of die-casting enterprises, and plastic substitution in two-wheeled vehicles. In the short term, amid the game between cost support and sluggish demand, magnesium price will continue to fluctuate in a narrow range.

Aug 14, 2026 09:20

Aug 14, 2026 09:19

Magnesium Inventories Decline as Supply Slowly Ramps Up and Demand Increases

【SMM Weekly Magnesium Inventory Express】This week, the inventory of primary magnesium smelting enterprises decreased by 2.20% month-on-month, and the overall primary magnesium market inventory showed a continuous downward trend this week. This round of inventory decline is mainly driven by two factors. On the one hand, although more enterprises in the main primary magnesium production areas resumed production this week and the total output of the industry was slightly adjusted upward, the resumption progress was relatively gentle, the overall increase in output was limited, and the supplementary strength of new supply to inventory was weak; on the other hand, downstream traders concentrated on restocking, coupled with the centralized fulfillment of pending orders in the early stage, the overall activity of the market trading atmosphere increased significantly, and the spot goods in the factory were greatly digested, which directly drove the rapid destocking of the factory-side inventory. Looking forward to the after-market, as the resumption rhythm of magnesium smelting enterprises continues to accelerate, the overall output of primary magnesium will further increase, and the pressure on the market supply side will gradually accumulate. By then, the inventory of magnesium plants is likely to end the current downward trend and usher in a situation of stopping the decline and rebounding.

Aug 14, 2026 09:19