Institution: Global Magnesium Alloy Industry Supply-Demand Structure Expected to Continue Improving

Dongxing Securities believes that the global magnesium alloy industry’s supply and demand structure may continue to improve, potentially boosting profitability and valuation levels for magnesium alloy companies. Based on analysis and forecasts of the global magnesium alloy supply and demand sides, from 2026 to 2028, the global magnesium alloy supply-demand gap is expected to be 10,000, 54,000, and 85,000 tons respectively. The ongoing optimization of the supply and demand structure in the magnesium alloy industry may drive magnesium prices to rise from cyclical lows. The rising industry prosperity, combined with the transformation of the magnesium industry chain toward high-end magnesium alloy manufacturing and the resulting increase in product added value, will improve the profitability and valuation levels of related companies in the magnesium industry. The investment attributes of the magnesium industry are expected to strengthen.

Minmetals Securities believes that automakers are gradually tendering for new large-sized magnesium alloy components, which may indicate that automotive magnesium alloys are shifting from small lightweight parts like steering wheel frames to large new components. As a result, magnesium alloy parts for automobiles are expected to enter a period of rapid growth.