Magnesium Inventories Rise 1.78% MoM Amid Supply Cuts and Weaker Demand

[SMM Magnesium Express]Yesterday, Donghe New Materials announced that its controlling subsidiary, Inner Mongolia Hemguli Materials, plans to invest no more than 320 million yuan to construct a 200,000-ton-per-year fused magnesia project in Kulan Banner, Tongliao City, Inner Mongolia. The project will produce 100,000 tons each of ordinary fused magnesia and large-crystal fused magnesia annually, with a construction period of approximately 20 months. It will also include a supporting new energy project integrating power generation, grid, load, and storage, with green electricity accounting for over 90%. This marks the transition of Liaoning's magnesia enterprises from planning to actual construction in cross-regional "green power + magnesia" capacity deployment. With deeper integration of green power and magnesia production, the green transformation and cost optimization process of the magnesia industry is expected to accelerate further.

In June, China's total magnesium product exports reached 39,400 mt, up 4.8% MoM and 10.9% YoY. Of this, magnesium ingot exports were 22,700 mt, down 5.5% MoM, mainly dragged down by the traditional off-season demand in and outside China. In contrast, magnesium powder and magnesium alloy exports performed strongly, up 21.2% and 33.2% MoM respectively, driven by periodic restocking, downstream stockpiling in advance, and the rapid development of sectors such as lightweight vehicles.

[SMM Magnesium Express]According to statistics from the General Administration of Customs, China exported approximately 39,400 tons of magnesium products in June 2026, marking a 4.8% month-on-month increase and a 10.9% year-on-year growth. Specifically, China exported 22,700 tons of magnesium ingots in June 2026, down 5.5% month-on-month but up 11.3% year-on-year; 5,848 tons of magnesium powder, up 21.2% month-on-month but down 0.64% year-on-year; and 8,650 tons of magnesium alloys, up 33.2% month-on-month and 23.2% year-on-year.