Magnesium Ingots Price Forecast Report 2024-2025 | Price Trend, Latest Prices, Market Analysis, News, Chart, Demand, Extensive Forecast, Historical and Forecast Data

Magnesium Ingots Price Forecast

Short-term market analysis suggests the year 2024 to be a moderate year for the magnesium ingot industry. Excess inventory pressure is making the suppliers rethink production and procurement. Many manufacturers have restricted production to ensure buoyancy in magnesium ingot prices. Along with lukewarm demands, geopolitical disturbances and supply chain curtailments are also causing concern. In Saudi Arabia, the price trajectory is anticipated to remain fluctuating. Magnesium Ingot prices are expected to remain confined in the near future. The emerging concept of friend-shoring will likely influence the import and export relationships between nations.

Market Dynamics

European magnesium ingot prices have plummeted due to oversupply from China and weakened global demand. In Rotterdam, prices dropped below $3,000/t by the end of Q1'24, marking a significant decline from the $3,500-3,600/t range at the start of the year. Chinese prices are also down, with some producers facing losses as costs exceed selling prices. Despite this, both Chinese and European prices remain higher than 2020 levels. Supply cuts in China could stabilize prices, but uncertainties persist. Reduced output in China's Yulin province and declining exports to Europe indicate market challenges. Although downstream demand for aluminium is rising, translating into increased demand for magnesium as well, uncertainties over price direction linger. Complicated trade dynamics in the Middle East with the ongoing Israel-Hamas war are disturbing the supply chains and commodity flow in Saudi Arabia; thereby, the prices are looking up in the second quarter. However, given the humble demands, the prices are likely to stabilize again in H2'24.

Annual Outlook for Magnesium Ingots Industry

The global outlook for the magnesium ingots industry suggests an increase in overall light metal inventories in the current fiscal year. For the US market, increased production coupled with declined demand has led to a buildup of metal reserves, indicating a supply surplus scenario is likely to prevail this year, supported by well-stocked inventories.

Europe aims to revive magnesium mining after a decade to reduce its reliance on Chinese imports. Verde Magnesium, backed by US investor Amerocap, has secured a concession in Romania and plans a $1 billion investment in a disused mine, targeting an annual production capacity of 90,000 tonnes by 2027. With approximately 95% of European magnesium consumption currently imported from China, this move aligns with the EU's goals for resource independence. Verde Magnesium is pursuing EU funding and strategic importance under the Critical Raw Materials Act.

In Saudi Arabia, oversupply and high inventory stocks continue to pose challenges, and suppliers are combating this situation by restricting production. Driven by oversupply and subdued demand, a consolidated price trajectory with potentially lower prices is anticipated in the region going forward.

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