According to export data for magnesium products in May, overall export volumes showed a month-on-month upward trend. However, when examining the specific product structure, the market landscape has undergone significant changes: exports of magnesium powder and magnesium alloys have increased significantly, with magnesium alloys currently accounting for the largest share of exports; simultaneously, exports of magnesium ingots have plummeted to their lowest level in nearly a year. This phenomenon is closely linked to the price trends of magnesium ingots in May. During the month, magnesium ingot prices reached an annual high, prompting some downstream customers to adopt a wait-and-see attitude and postpone purchases, thereby leading to a significant contraction in the scale of raw magnesium exports.
From the regional distribution of magnesium ingot exports in May, it is evident that the traditional position of Europe as the primary import market has weakened significantly, with its import share declining to 28%. This change is primarily attributed to two factors: first, the sharp fluctuations in magnesium ingot prices in May made it difficult for buyers to make informed decisions; second, the ongoing contraction of Europe's downstream automotive manufacturing sector has led to a gradual reduction in end-user orders. In contrast, the import share of South Korea and India has increased, indicating that the Asian market remains the primary region for magnesium ingot circulation, while North America also maintains stable demand. It is anticipated that as European traders gradually re-enter the market in June, magnesium ingot imports to the Netherlands may see a slight recovery.
Looking at year-on-year export volume data, magnesium ingot exports declined by 14.43% in May, reflecting a significant reduction in overseas order volumes. Meanwhile, procurement patterns also saw new changes in June: overseas customers no longer adopted the traditional one-to-one order model, but instead turned to electronic tendering to widely solicit quotes, thereby gaining insight into market price trends and seeking the most favourable offers. Notably, large enterprises have established comprehensive cost analysis and supply-demand forecasting models to enhance their pricing negotiation capabilities with magnesium ingot suppliers.
SMM analysis suggests that June magnesium product exports are expected to increase alongside rising orders. It also recommends that traders prioritise emerging markets such as South Korea, India, and the Middle East, focusing not only on price competition but also on maintaining product quality and brand reputation.
