China Nonferrous Metals News
CNIA: China produced 474.1 kt of primary magnesium in H1 2022. Magnesium production in Shaanxi was 50 kt in June, up by 14.68% m-o-m and 295.1 kt in H1 2022. In Shanxi, magnesium production was 17.3 kt in June, down by 3.36% m-o-m and 103.8 kt H1 2022.
Domestic magnesium prices had been hovering between RMB 25,000~27,000/t in June, with average monthly prices at RMB 25,786/t, up by 33.57% y-o-y. Domestic magnesium prices averaged RMB 37,997/t in H1 2022, up by 126.88% y-o-y.
Looking forward in July, domestic magnesium production is likely to drop in the wake of increasing scheduled summer maintenance. Other factors such as rising production costs and increased intensity of workers amid harsh summer heat are likely to prop prices. Conversely, sluggish downstream demand and relatively high inventory levels at smelters are expected to weigh on prices. Market commentators project magnesium prices to remain stable at low levels over the short term.