According to SMM data, China's magnesium alloy production in November 2024 decreased by 1.0% MoM. In November, the operating rate of magnesium alloy enterprises remained stable overall. Due to the continuous decline in prices of magnesium ingots and the slowdown in demand from downstream die-casting plants and 3C producers, buyers generally held a pessimistic outlook on the magnesium alloy market. Market transactions were difficult to follow up, and there were rumors that a major magnesium alloy producer had high inventory levels, leading two magnesium alloy manufacturers to halt production.
As the aluminum-magnesium ratio gradually decreased, the high aluminum prices significantly highlighted the cost-performance ratio of magnesium alloys. The attention to magnesium alloys in end-use applications steadily increased, and the operating rates of some magnesium alloy enterprises were adjusted upward. SMM expects magnesium alloy production in December to recover to 31,000 mt.
