China Nonferrous Metals News
CNIA: China produced 494.1 kt of primary magnesium during the first seven months of 2021, up 4.55% y-o-y. Of the total, magnesium production in Shaanxi was 344.2 kt, Shanxi 68.7 kt and Ningxia 13.4 kt, up 12.3%, up 0.58% and down 50.35% y-o-y respectively.
Domestic magnesium prices have been hovering around RMB21,000~29,500/t, with the monthly average at RMB23,472/t, up by 80.19% y-o-y. The surge in prices can be attributed to rising raw material prices, (coal and FeSi), along with shrinking spot market supply led by increasingly stringent environmental rules imposed on smelters. Buckling under high magnesium prices, downstream processers have had to halt some or all of their operations. In response, China Magnesium Association has called on all members to increase efficiency and productivity in a bid to keep magnesium prices stable within a reasonable range.