China Nonferrous Metals News
10 July: Mainstream magnesium transaction prices were RMB12,900/t in Fugu Shaanxi and RMB13,200/t in in Wenxi Shanxi, falling by RMB100/t from last Friday. Domestic magnesium prices have fallen to a low point of under RMB 13,000/t once more after slumping in April.
Domestic magnesium smelters are buckling under the pressure of low prices and high production costs, with FeSi prices soaring by RMB400~500/t from April to RMB5,800/t at present. A rapid growth in coal prices is also weighing on smelters.
With magnesium prices falling close to smelter breakeven points, a further decline in price is unlikely over the short term. Meanwhile, downstream buyers are likely to restock next week and prices are expected to remain low.