China Nonferrous Metals News
CNIA: China produced 465.4 kt of primary magnesium from January to July 2020, down 3.66% y-o-y. Of this figure, Shaanxi’s output was 306.5 kt, up by 6.85% y-o-y, Shanxi’s output was 62.7 kt, down 16.91% y-o-y and Ningxia’s output was 27.7 kt, up by 6.52% y-o-y.
During August, domestic daily magnesium prices have been hovering between RMB128,000~132,000/t with monthly prices averaging RMB13,026/t, down 17.64% m-o-m. Domestic magnesium prices averaged RMB13,597/t during the first eight months of 2020, down by 18.28% y-o-y. Despite a strong rebound in the domestic economy, domestic demand alone is not enough to boost China’s magnesium market – which is chiefly driven by exports. Looking forward, China’s magnesium prices are expected to trend down further in the short-term.