The Domestic Demand for Magnesium Alloys Are Expected to Increase in June

SHANGHAI, Jun 9(SMM) -

According to SMM data , China's magnesium alloy output stood at 27,500 mt in May, down 4.12% month on month and 11.03% on the year. The output totalled 126,700 mt from January to May, a year-on-year decrease of 23.46%.

The average operating rate of magnesium alloy industry stood at 48.51% in April, down 4.12% month on month and 15.21% year on year.

According to the sales staff of domestic magnesium alloy factories, some factories have reduced production amid the rapid decline of magnesium prices and squeezing alloy profits.

As the domestic pandemic has been effectively controlled and favourable policies have been released, large-scale subsidies for consumers to purchase automobiles were implemented across the country, and most policies will continue until the end of the year. It is expected that the domestic demand for magnesium alloys will increase and the output of magnesium alloys in June will be 28,000 mt.