Shanghai Nonferrous Metals News
SMM: China produced 79 kt of magnesium ingot in October 2022, down by 3.75% m-o-m but up by 33.8% y-o-y. China’s total magnesium production during the first ten months of 2022 totaled 806.8 kt, up by 28.68% y-o-y.
Domestic magnesium smelters face mounting inventories due to a slower than expected recovery in consumption. In addition, profit margins for domestic smelters fell sharply led by rising prices of coal and FeSi. Some smelters were forced to curb operations amid high production costs and high levels of stocks in October.
Smelters in major producing regions are not keen to operate at full capacity under pressure from low magnesium prices. Industry commentators forecast domestic magnesium production at 82 kt in November 2022, up slightly m-o-m.