Magnesium Alloy Ingot Prices Decline in the US Amid Weak Downstream Demands

In the third week of June, the Magnesium Alloy Ingot showcased a declining price trend in the US market as the demand from the downstream automobile and aerospace industry weakened. Additionally, the feedstock price decreased, weakening cost support for Magnesium Alloy Ingot production. The downstream buyers remained hesitant to place large orders amid declining Magnesium Alloy Ingot prices in the US spot market.

The feedstock of Magnesium Alloy Ingots such as Magnesium, Aluminium, Zinc, and Manganese shows a declining price trend in the domestic market. The price of these feedstocks decreased as the extraction rate was high in the local mines. The mines in Nevada increased the production rate of magnesium carbonate, which led to increased supply and ultimately declined the prices of magnesium in the US spot market. Aluminum was already abundant in the warehouses in the US due to oversupply from local as well as Chinese manufacturers. The abundance of these feedstocks and their declining price trend provoked the suppliers to reduce the price for the Magnesium Alloy Ingot in the US spot market.

The downstream automobile industry decreased the demand for Magnesium Alloy Ingot in the US spot market as the Auto parts and component industry experienced a decline of about 4.2% this week. Mobileye Global and Tesla, the US's major automobile and auto parts manufacturers, manufacturing activities declined by about 3% this week. This droves the downstream automobile industry downward, affecting the demand for the Magnesium Alloy Ingot. At the end of June, the automobile industry is expected to rise after improving the USA's supply chain.

Moreover, the Aerospace industry, a major consumer of Magnesium Alloy Ingot, has also declined by about 1.3% amid a decrease in the share of Boeing, a major global aerospace industry, due to reduced activity in the US spot market. According to major market players, the buyers had a pessimistic market sentiment due to declining activity in downstream industries that caused the delay in large orders for the Magnesium Alloy Ingot in the US spot market.

Additionally, the downstream sector, such as the Electrical and medical sectors, declined, which gradually affected the demand for Magnesium Alloy Ingots as they were used in the abovementioned industry. The electrical industry declined by about 2.8% due to a decline in activity rate from NextEra Energy Inc., a major renewable energy industry in the US, consequently leading to reduced demand from the downstream infrastructure and energy sector for the Magnesium Alloy Ingot in the US spot market.

According to ChemAnalyst, the price for the Magnesium Alloy Ingot will show an uprising trend in the US spot market as the downstream automobile industry will rise amid improvement in the supply chain. The increase in development in the renewable energy sector and the Infrastructural development will improve the demand for the Magnesium Alloy Ingot, hence increasing its price in the upcoming months.