EU Announces 46 Strategic Raw Material Projects, Including Romania's Verde Magnesium Initiative

【SMM Magnesium Flash】On October 16th, Latrobe Magnesium announced its latest progress, stating that the installation progress of Phase 1B of its demonstration plant in Victoria has reached 95%, with 35% of the commissioning completed. The company remains committed to its goal of producing the first batch of magnesium metal with a purity exceeding 98% by the end of 2026. Simultaneously, the company is advancing its plan to build a 50,000-ton magnesium plant in South Carolina, USA, and has secured a total of 32,000 tons/year of non-binding intention to purchase. As of the end of September, the company held AUD 3.4 million in cash and is currently undergoing a fully underwritten share placement financing of AUD 3.4 million, with the deadline for share placement extended from October 19th to October 26th. As the commissioning of the demonstration line progresses, the industrialization verification process of its low-carbon magnesium extraction technology is expected to accelerate further.

【SMM Magnesium Flash】 On October 1st, the U.S. Department of Commerce issued an announcement, initiating the fourth anti-dumping sunset review investigation on magnesium metal imported from China. The U.S. International Trade Commission simultaneously launched an industry injury investigation. Interested parties must register their response within 10 days of the announcement and submit their response opinions by November 2nd. The anti-dumping duties can be traced back to the case filing in 2004 and the official imposition in 2005, and have been extended three times since then, in 2011, 2016, and 2021. This review is the fourth assessment of the retention or abolition of this measure after more than two decades of implementation. If both agencies make affirmative rulings, the tax order will continue to be maintained. The previous three reviews all ended with affirmative final rulings, and the outcome of this review will directly affect the export prospects of Chinese magnesium metal to the United States.

[Magnesium Prices Continue to Hit Bottom Amid Weakness; Supply-Demand Pattern Unlikely to Change in Short Term] This week, the magnesium industry chain remained broadly in the doldrums. On the raw material side, the Wutai dolomite mine halted production, and after enterprises purchased externally to supplement supply, the shortage eased, with ore prices holding steady. Magnesium ingot prices in China continued to slide, with the decline slowing near the cost line as prices consolidated at lows. Meanwhile, export FOB prices followed the domestic decline, and overseas inquiries only lifted sentiment, with no actual deals concluded yet. Magnesium powder and magnesium alloy came under pressure simultaneously, as downstream demand from automobiles, EVs, and steel desulfurization remained weak. Deep-processing enterprises cut production and destocked, and processing fees showed little sign of improvement. In the short term, prices are likely to remain in the doldrums.