China's Magnesium Alloy Output Fell to 24,700 mt in June

SHANGHAI, July 5 (SMM) - China's magnesium alloy output stood at 24,700 mt in June, down 10.20% MoM and down 20.39% YoY, according to SMM statistics. The output totalled 151,500 mt in January-June 2022, a year-on-year decrease of 22.98%.

The average operating rate of the magnesium alloy industry stood at 43.56% in June, down 10.20% month on month and 24.13% year on year.

According to the domestic magnesium alloy sellers, the overseas orders were muted amid the overseas summer holiday period. In addition, the operating rates of the downstream declined amid the high temperature, hence the demand for magnesium alloy decreased. In this case, some magnesium alloy factories chose to lower the processing fees and some controlled the inventory level by reducing the operating rates. As the exports take up a large proportion of the total demand, the weak overseas demand will continue to affect the operating rates of magnesium alloy. It is expected that the magnesium alloy output will be 24,000 mt in July.