The price for USA Magnesium Alloy Ingot (AZ91D), which fell 4.6% in November, is expected to move up 0.9% in December due to tighter Chinese market supply scheduling and increased North American car production to counterbalance the initial setback due to the disappearance of EVs.
The prices of United States Magnesium Alloy Ingot (AZ 91 D) are predicted to recover with an increase of 0.9% in December 2025, after dropping 4.6% in November 2025. The reason for the market recovery of Magnesium Alloy Ingot is that the supply conditions in the industry have started improving, along with the improvement in the automotive market.
In November, the prices of Magnesium Alloy Ingot offered by CFR U.S. Gulf dropped as the major exporting country, China, increased production. China's production of magnesium alloys rose by 2.53% from the previous month and jumped 31.49% from last year. The cumulative growth rate reached 11.89%. The production rate for Magnesium Alloy Ingot had already jumped to 71.37% in October, and the major producers in Anhui and Shanxi were already producing at full capacity. There were also newly restarted production lines in Inner Mongolia and Shaanxi, and the processor in Guangdong reported an increase in received orders. Although the inventory balance remained inverted and most of the manufacturers produced on received orders, the spot market supply of Magnesium Alloy Ingot improved from October, pressuring export prices.
As far as U.S. consumers are concerned, this increase in Chinese production output meant lower import prices in November of Magnesium Alloy Ingot; however, the December outlook appears to be changing. Most Chinese manufacturers’ orders are set to extend through the early to middle part of December, and spot supplies are set to remain tight; therefore, capacity utilization and greater pricing for Magnesium Alloy Ingot will still be supportive throughout China and will enable them to transfer their increase to foreign markets such as the USA.
Demand-side factors for Magnesium Alloy Ingot: November saw a slowdown in car sales in the U.S. market. Ford Motor Co., for instance, indicated a flat sales performance, with a drop of close to 1%, to 164,925 vehicles, whereas sales of electric vehicles contracted by a whopping 61% to a mere 4,247 units, a clear effect of the scrapping of the federal electric vehicle tax credit of $7,500 passed in President Donald Trump's tax and spending package in October.
However, December is expected to offer some reprieve for Magnesium Alloy Ingot. The North American LCV production forecast has been adjusted upward by 76,000 vehicles for 2025 and 288,000 vehicles for 2026, at 15.24 million and 15.08 million vehicles, respectively. Ford is expected to offset lost market share of its F Series truck lineup, while inventory management and rising demand offer a glimmer of hope. Rollbacks of U.S. emissions rules are scheduled to improve makers of ICE-based trucks, thus helping profitability and consumption of alloys.
As per ChemAnalyst, combining the stronger Chinese demand schedule and the rebound in the US automotive sector, the price of Magnesium Alloy Ingot is forecast to rise by 0.9% in December, reflecting a recovery from the dramatic reduction in November.
