SMM

According to SMM data, China's magnesium alloy production in September 2024 slightly decreased compared to August. The operating rate of downstream processing enterprises for magnesium alloy declined. The cut-throat competition in processing fee quotations intensified, but the high aluminum prices significantly highlighted the cost-effectiveness of magnesium alloy. The focus on end-use applications of magnesium alloys has steadily increased, with some magnesium alloy manufacturers operating at near full capacity. The reduction in production in September was due to the continued deterioration in end-use demand, making it difficult to follow up on magnesium alloy transactions. The cut-throat competition in processing fees made profitability challenging for manufacturers, leading some to reluctantly lower their operating rates. Amid continuous low-level fluctuation of raw material magnesium ingot prices, downstream enterprises purchased as needed. The essential demand remained, but the recovery cycle for the magnesium alloy market was prolonged. SMM estimates that magnesium alloy production in October will remain at 30,000 mt.