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.


CM Group Newsletter

Sign up to the CM Group newsletter to receive regular publications.