Shanghai Nonferrous Metals News
China produced 58 kt of magnesium in May 2023, down by 17.3% m-o-m and down by 32.7% y-o-y. China’s total magnesium production during the first five months of 2023 reached 327 kt, a sharp fall of 22.6% y-o-y.
With the semi-coke furnace retrofitting policy being implemented in Fugu Shaanxi, (a major producing region) in May, in conjunction with weaker magnesium prices, domestic magnesium supply fell rapidly in May. In view of continued sluggish demand going forward, domestic smelters are likely to further curb operations seeing SMM forecast domestic magnesium production to drop further to 53 kt in June 2023.