The Magnesium Chloride market in China saw a 1.8% decrease in prices during April 2025, changing the price trend seen in March. This was mainly because of the reduction in demand from downstream construction, paints and coatings industries. Market analysts at ChemAnalyst stated that Magnesium Chloride price correction was due to the sharp price growth in March.
On the supply side, maintenance activities affected the feedstock magnesium ingot production in regions such as Shaanxi, leading to its limited availability. While this initially affected Magnesium Chloride production, partial resumption of operations by mid-month ensured that domestic supplies remained adequate. Sufficient inventory levels at warehouses also helped stabilize the market, avoiding further price decrease. However, Magnesium Chloride trading activities were average due to currency fluctuations and port congestions in South China.
Despite these challenges, downstream magnesium alloy manufacturers showed good performance, supported by the demand from export-based industries and seasonal die-casting applications. Meanwhile, Magnesium Chloride producers changed their production volumes to the ongoing demand, maintaining a balanced supply. Exports faced some challenges due to container shortages, but domestic supply chains continued to operate normally.
The construction sector, a major Magnesium Chloride consumer, faced many difficulties. Stimulus efforts taken by the government, such as interest rate reductions and infrastructure spending, were not sufficient to control the bearish outlook caused by the property market. Higher number of unsold properties and delays in project launches affected the Magnesium Chloride demand.
Similarly, the paints and coatings industry, another main user of Magnesium Chloride, showed only moderate activity. While automobile and industrial coatings segments maintained stable performance, the architectural coatings sector suffered from average construction activity, decreasing the Magnesium Chloride usage in paint formulations. This contributed to the overall market bearishness and affected the price trend.
Looking forward, ChemAnalyst has predicted Magnesium Chloride prices to increase in the coming months. The firm has projected the prices to increase nominally this month and by a further 1.8% in June. Magnesium ingot production is expected to stabilize as smelters complete their maintenance activities and resume operations. With increased investments in public infrastructure, demand from the construction industry is anticipated to recover. Logistical operations are also expected to improve, supporting the Magnesium Chloride supply chain.
Moreover, demand from water treatment applications usually increases during summer, boosting Magnesium Chloride usage. Exports will rise as global economies recover, increasing the demand for magnesium-based compounds. Magnesium Chloride manufacturers could increase their production rates to meet both domestic and overseas demand, supporting the price growth.
