Shanghai Nonferrous Metals News
China produced 70 kt of primary magnesium in April 2023, up by 5.3% m-o-m but down by 17% y-o-y; China’s total production during the first four months of 2023 was 269 kt, down by 20% y-o-y.
Domestic magnesium prices spiked in April due to the news of semi-coke furnace suspensions which were to begin within the month. These suspensions in conjunction with low inventories, saw downstream buyers keen to restock, propping prices at high levels. As a result, magnesium smelters were keen to produce on high profit margins during April. Looking forward, the pending policy of semi-coke furnace retrofitting is most likely to be implemented in May, which will consequently leverage down production to approximately 64 kt in the month.