Asian Metal News
Domestic magnesium prices have increased by RMB 1,100/t from last Friday to RMB 23,500~24,000/t this week driven by improving demand. Industry commentators forecast magnesium prices are set to rise further in view of ample new orders and smelters’ strong will to prop prices.
A northern smelter sold 300 t of magnesium ingot at RMB 23,000/t on Monday, and raised the prices to RMB 24,000/t in the afternoon. It sold 100 tonnes of magnesium at RMB 22,500/t last Friday, when some transactions were concluded at RMB 22,400/t. A company spokesman said; “We expect magnesium prices to rise further by RMB 500/t this week driven by tighter supply led by increasing production cuts since mid-July. Meanwhile, downstream buyers are running low in stocks, resulting in stronger demand”.
Designed with 40 ktpy magnesium capacity, the smelter produced 37.5 kt of magnesium in 2021, 25.5 kt in the year to date. It produced 3.5 kt of magnesium in July, with its August production estimated at 3.2 kt, and it is holding 2.6 kt in stock.