Magnesium Inventories Decline as Smelters Shut Down for Maintenance, Regional Disparities Evident

[SMM Magnesium Express] Recently, according to industry media reports, Chongqing Boao Magnesium Aluminum, in collaboration with Haitian Zhisheng Metal, unveiled the world's first mass-produced semi-solid process magnesium alloy dashboard crossbeam, designed for Seres' high-end models. The product is manufactured using Haitian's 3600T magnesium alloy injection molding machine, achieving over 45% weight reduction compared to traditional steel structures and 30% to 40% reduction versus aluminum alloy, without compromising rigidity and safety performance. It has now achieved stable daily production of 1,000 sets. As semi-solid magnesium alloy mass production technology continues to mature, the large-scale application of magnesium alloy in automotive core structural components is expected to further accelerate.

[Magnesium Ingot Offers Lowered for Destocking, Deals Recover; Both Domestic and Overseas Demand Weak, Market Under Pressure] Today, magnesium ingot prices edged lower in a narrow range. With factory inventories piled up, producers actively lowered prices to move goods, leading to an increase in actual spot orders. End-use demand in and outside China remained sluggish. Downstream users made only just-in-time procurement, and export offers were under pressure. Demand support was insufficient. The short-term market is expected to continue consolidating on a subdued note within a narrow range.

[SMM Weekly Magnesium Inventory Flash Report] This week, social inventory increased by 3.8% month-on-month, showing a slight inventory accumulation trend overall. Looking at different regions, inventories in Shaanxi, Shanxi, and Tianjin Port have all accumulated to varying degrees. In the Shaanxi region, speculative sentiment has strengthened, with some traders making small purchases at low prices and hoarding goods to wait and see the after-market. In the Shanxi region, the purchased goods of some traders have gradually flowed into warehouses. As for Tianjin Port, export orders have remained sluggish, and since the document submission deadline has not yet arrived, inventory reduction through export sales has been hindered, leading to inventory backlog. Overall, the digestion of circulating goods has been slow, and inventory pressure may persist.