Magnesium ingot market in early July

In early June, as magnesium prices continued to rise to high levels, buyers gradually returned to rationality, coupled with small magnesium factories gradually selling at low prices, the center of gravity of magnesium prices gradually shifted downwards. The news of the resumption of production in magnesium plants is gradually fermenting, and the addition of magnesium ingot supply may further increase the inventory pressure on magnesium ingot smelting enterprises. The downward channel for magnesium prices has opened again, falling back to 15950 yuan/ton; In mid to late June, downstream traders concentrated their purchases to support demand, causing magnesium prices to rebound several times. However, due to factors such as lower order prices in the early stages, there was a narrow range of fluctuations in mid to late June.

In June 2025, China's raw magnesium production increased by 6.63% month on month. In June, the production of domestic magnesium raw materials varied, and overall, the national magnesium ingot production increased month on month.

The increase in production in June was mainly caused by two reasons: firstly, due to the low prices of raw materials, the profit margins of magnesium smelting enterprises were effectively improved. Magnesium ingot smelting enterprises that had previously stopped production due to cost losses gradually produced raw magnesium in early June, resulting in an increase in raw magnesium production in June. Secondly, the two Xinjiang magnesium smelting enterprises that underwent early maintenance have gradually resumed production, resulting in a significant increase in magnesium production. The decrease in raw magnesium production in June was mainly due to the following reasons: two raw magnesium smelting enterprises in Shaanxi conducted maintenance or reduced production, resulting in a total reduction of about 1500 tons of raw magnesium production in June. Overall, the increase in raw magnesium production nationwide is greater than the decrease in raw magnesium production, and the overall raw magnesium production in June increased by 6.63% month on month. According to SMM's research, four original magnesium smelting enterprises in the main production areas have reported plans to resume production in July, and one has recently ignited a blast furnace. The specific resumption time of other original magnesium smelting enterprises is uncertain, and SMM will further track it. Overall, the production of domestic magnesium ingot smelting enterprises may increase in July, and it is expected that the domestic raw magnesium production in July may slightly increase compared to the previous month.