Beijing Rentong and Liaoning Haimi Sign Strategic Agreement to Develop World-Class Magnesite Industry

[SMM Weekly Magnesium Output Briefing] From July 10 to July 16, the weekly output of sampled magnesium plants across the country stood at 22,729 tonnes, with a weekly operating rate of 74.57%, down 2.95% month-on-month. According to surveys, a number of primary magnesium smelting enterprises entered the centralized shutdown and maintenance cycle this week, leading to a continuous decline in the overall operating rate of the industry. Some primary magnesium smelters have resumed production starting this week; considering that a number of producers still have maintenance schedules in the late July, the primary magnesium output will bottom out and stabilize.

【SMM Weekly Magnesium Inventory Express】This week, producer inventories edged up 1.78% month-on-month. On the supply side, multiple primary magnesium smelters in major production regions have suspended production for centralized maintenance, leading to a notable reduction in the industry's spot supply of magnesium metal. On the demand side, constrained by both overseas summer holidays and the off-season of the downstream die-casting sector, market procurement demand has weakened in tandem, putting pressure on the digestion of industrial output. As a result, producer inventories continue to show a rising trend.

[SMM Weekly Magnesium Inventory Express] This week, the social inventory increased by 3.4% month-on-month, showing an overall inventory accumulation trend. There are two main reasons: First, affected by the news that magnesium ingot manufacturers in the main production areas have suspended production for maintenance, some traders have appropriately stocked up. However, both the domestic and overseas markets are in the off-season of demand, with limited new orders. Except for individual delivery needs, the overall shipment is relatively small. Second, the high sea freight coupled with exchange rate fluctuations has compressed export profits, and downstream price pressure is obvious. Traders' willingness to ship is low, and the pick-up rhythm has slowed down. Most of the purchased magnesium ingots are stored in warehouses in Shaanxi and Tianjin ports for accumulation. The overall downstream demand is insufficient to digest, the inventory destocking rhythm is slow, and the social inventory continues to accumulate.