Shanghai Nonferrous Metals News
Buoyed by surging FeSi prices, mainstream domestic magnesium transaction prices continued to rise, increasing by RMB500/t from last Friday to RMB14,600~14,700/t on Monday in Fugu Shaanxi, with some high level quotations at RMB15,000/t.
FeSi prices surged after the announcement of a 3-month production cut period during the 2020~2021 winter in Zhongwei Ningxia. Thirteen local FeSi smelters, will be affected, with monthly FeSi output of 42 kt or daily output of 1.4 kt. FeSi costs account for 40%~50% of total magnesium production costs.