Magnesium Ingot Inventory Rises 1.59% Month-on-Month, Market Struggles with Weak Demand and High Shipping Costs

[SMM survey: Magnesium alloys become core lightweight materials: Tianhao and Sinyuan ZM expand production in succession] Recently, the magnesium alloy lightweight materials sector has seen a series of industrial moves: Tianhao New Materials signed a strategic cooperation agreement with Haitian Zhisheng Metal, with an initial intent to purchase 9 magnesium alloy injection molding machines to deploy capacity in South China; Sinyuan ZM announced plans to invest no more than 280 million yuan to build a lightweight precision structural parts intelligent manufacturing project in Fenghua. Both moves reflect the continuously climbing application demand for magnesium alloys in the high-end manufacturing sector.

【SMM Magnesium Flash】 On September 17th, according to foreign media reports, Latrobe Magnesium has received a conditional non-binding support letter from a large American financial institution, proposing to provide $15 million in equity funding for the feasibility study of its 50,000-ton annual magnesium metal plant in South Carolina, USA. The availability of funds is subject to conditions such as financing matching, due diligence, and regulatory approval. The project uses nickel-iron slag as raw material and has the potential to expand to a production capacity of 100,000 tons in the long term. The company's demonstration plant located in Australia is expected to be fully operational in the second half of 2026, with all production sold to the US market through distributors.

[SMM Magnesium Weekly Review: Cost-Inventory Tug-of-War Keeps Magnesium Industry Chain Consolidating Near Lows] This week, dolomite prices remained stable. Affected by fluctuations in coal and ferrosilicon prices, magnesium ingot in main production areas moved lower initially before strengthening, with raw material declines dragging magnesium prices down early in the week. After prices dipped, downstream restocking at lower levels drove a slight rebound in magnesium ingot, but social inventory remained high and supply pressure persisted. Export FOB prices declined in line with the domestic market, and overseas demand did not recover as expected, with the September-October peak season expectations falling through. Traders mostly stayed on the sidelines, and further downside room for prices was limited. Meanwhile, downstream magnesium powder prices fluctuated in tandem with magnesium ingot, with end-users purchasing only small volumes for immediate needs and no concentrated restocking. Supply and demand for magnesium alloy weakened simultaneously, with smelting-side production cuts but existing inventory remaining high. Downstream die-casting enterprises operated at low rates with insufficient orders, and processing fees remained under pressure. Overall, this week the magnesium industry chain was caught in a tug-of-war between costs and high inventory, with no substantial improvement in end-use demand, and short-term prices are expected to continue consolidating near lows.