Asian Metal News
Mainstream domestic magnesium prices fell sharply by RMB 1,000/t from last Friday and have been lingering around RMB 26,500~26,800/t this week led by slowing procurement activities and fierce price competition among smelters. Buyers have been cautious with few transactions this week, and in view of weakening demand industry commentators forecast prices to drop further next week.
A northern smelter was quoting at RMB 26,500/t this week, but no buyers were interested – in anticipation of further declining prices next week. The smelter sold 62 t of magnesium at RMB 28,000/t last Friday but made no further deals. Despite fierce price competition from competitors, the smelter is not going to reduce its offers in view of possible semi-coke furnace suspensions which are likely to begin in late April.
Designed with 20 ktpy capacity, the smelter produced 1.2 kt of magnesium in March with April output expected to remain stable. It produced 17 kt of magnesium in 2022, 3.7 kt in Q1 2023 and currently holds 3.5 kt of magnesium in stock.