Latest Update in the SMM Magnesium Market

[Recovering Transactions Underpinned the Magnesium Market as Weekly Inventory Continued to Decline] From May 8 to May 14, the weekly production of sampled magnesium plants nationwide was 23,576 mt, with a weekly operating rate of 77.4%, down 1.8% WoW.

[SMM Magnesium Weekly Review: Magnesium Market Weakened First Then Strengthened, Consolidating at Lows and Stabilizing; Supply-Demand Divergence Continued] This week, the magnesium market overall exhibited a pattern of weakening first then strengthening, gradually consolidating at lows and stabilizing. Dolomite prices remained stable, with transportation costs supporting delivery-to-factory prices to fluctuate at highs. Magnesium ingot prices drifted slightly lower at the beginning of the week under bearish sentiment, then bottomed out as producers held back from selling, speculative demand entered the market, and cost support held firm. The export market remained sluggish, with FOB quotes stabilizing at low levels before rebounding slightly. The magnesium powder and magnesium alloy markets operated steadily, with orders declining compared to Q1, operating rates edging down slightly, and new orders primarily driven by rigid demand. The magnesium alloy market showed notable supply-demand divergence, with stable demand in the automotive sector, weak two-wheeler demand, and processing fees under pressure. Overall, short-term bottom support for magnesium prices has emerged, but demand divergence will continue to constrain upside room.

[SMM Magnesium Survey: Chinese Magnesium Industry Expands into Turkmenistan, Brazil's Tariff Hike Blocks Exports to Brazil] A Chinese energy and chemical enterprise planned to build a magnesium alloy project in Turkmenistan, combining local raw materials with Chinese technology. Brazil significantly raised the anti-dumping duty on magnesium ingots from China to $4.07/kg, effectively closing the direct export channel.

[Magnesium Market Quotations Diverged with Weak Transactions; Prices to Remain Under Pressure] Magnesium prices were in the doldrums today. Leading producers held quotations steady at 16,400 yuan/mt, while some enterprises lowered prices to 16,300-16,350 yuan/mt. Downstream wait-and-see sentiment was strong, with only rigid-demand purchases being made.

[Dragged Down by Strong Supply and Weak Demand, Magnesium Prices Fell] Magnesium prices were in the doldrums today. Producers' quotes remained firm in the morning session, but some producers cut prices for shipments in the afternoon, with low-priced supplies increasing. Downstream wait-and-see sentiment was strong, with buyers making just-in-time procurement only, and the market showed a pattern of strong supply and weak demand.

[SMM Magnesium Weekly Review: Post-Holiday Magnesium Market Consolidates Weakly, Supply-Demand Dual Weakness Puts Prices Under Pressure] The magnesium industry chain was overall in the doldrums this week. Dolomite prices remained stable, with delivery-to-factory prices consolidating at highs. Magnesium ingot quotes fell due to weak post-holiday restocking and an increase in low-priced supplies, with FOB prices also edging down in tandem. The magnesium powder and magnesium alloy markets held steady with firm processing fees, but downstream buyers remained on the sidelines, presenting an overall pattern of strong supply and weak demand. In the short term, magnesium prices may continue to move sideways.

[Pre-Holiday Surplus Inventory Dragged Down Purchasing, Magnesium Market Trading Sluggish with Short-Term Downward Pressure on Prices] Today, the overall magnesium market trading was sluggish. Smelters maintained firm quotes but offered concessions in some cases. Downstream stocking inventory was sufficient, and the willingness to purchase on demand was weak, leaving short-term magnesium prices under pressure.

[SMM Survey: Global Magnesium Supply Landscape Undergoes Accelerated Restructuring with Simultaneous Breakthroughs in Australian Waste Residue Magnesium Extraction and EU Strategic Projects] Australia's waste residue magnesium extraction project achieved a key breakthrough, Greenland's Molli Hill received EU strategic certification, and Romania launched dual projects. The global magnesium supply chain is undergoing accelerated restructuring, with trends toward green and regional development emerging.

[Electric Drive Assembly Designated Orders Landed, Magnesium Alloy Opens Up Incremental Space in Automotive Sector] Recently, the application of magnesium alloy in the lightweighting of NEVs accelerated, with semi-solid die casting and large-scale integrated molding technology becoming the mainstream direction. Orders and capacity for core components such as electric drive housings and auto body structural parts advanced simultaneously.

[SMM Magnesium Weekly Review: Dual Support from Costs and Stockpiling — Magnesium Ingot Prices Stopped Falling and Stabilized This Week] This week, China's magnesium industry chain overall showed a stable-to-firm trend, moving sideways. Raw material dolomite relied on supply from neighboring provinces due to production halts in major producing areas, while downstream primary magnesium smelting operating rates rose to form rigid demand support. Combined with high transportation costs, prices remained stable overall with delivery-to-factory prices consolidating at highs. The Chinese market for magnesium ingots consolidated at lows and stabilized, benefiting from pre-holiday restocking that drove transaction recovery and enterprise sentiment to hold prices firm amid rising smelting costs. The export market remained sluggish as ex-China clients chased lower prices and new orders were weak. Magnesium powder and magnesium alloy markets operated steadily in tandem — the former maintained production based on demand supported by stable domestic and export orders and sufficient raw material inventory, while the latter moved in line with magnesium ingot prices, with processing fees remaining firm and benefiting long-term from demand support driven by tightening regulatory standards for two-wheeled electric vehicles under the new national standard. The overall industry chain supply-demand pattern showed localized divergence but remained generally stable.