According to the latest industry data, U.S. imports of fused and dead-burned magnesia (DBM) dropped by 28.8% in June 2025 compared to May, continuing a downward trend that began earlier this year. The contraction reflects a broader slowdown in the American steel industry — the country’s primary consumer of magnesia-based refractories.

Steel Industry Slowdown Drives the Decline

Analysts attribute the lower magnesia demand to reduced steel output and maintenance shutdowns at several electric arc furnace (EAF) operations. In 2024, imports of magnesia from China to the U.S. fell by 41% year-on-year, signaling a sustained contraction in steelmaking activity and a cautious approach among refractory buyers to raw material inventory levels.

U.S. refractory producers and distributors are reportedly prioritizing existing stockpiles rather than placing new import orders, especially for DBM grades used in steel ladles, converters, and tundish linings. This has put additional pressure on suppliers from China, Turkey, and Brazil, who traditionally account for the majority of U.S. magnesia imports.

Market Balance and Price Trends

Market participants note that while fused magnesia (FM) prices have stabilized following earlier spikes linked to logistics and energy costs, the DBM segment is now under downward price pressure due to weak demand and oversupply in the international market. Freight rate normalization has further eased import costs, but volumes remain constrained.

At the same time, several U.S. distributors report longer contract cycles and delayed restocking schedules. This suggests a structural cooling in magnesia demand, tied not only to steel but also to slower construction-related refractory consumption.

Outlook

Industry experts expect that if U.S. steel output continues to lag behind 2023 levels through Q4, magnesia import volumes may fall by up to 30–35% year-over-year by the end of 2025. The market could see renewed activity in early 2026 if industrial output rebounds and refractory producers begin replenishing depleted inventories.

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