China Nonferrous Metals News
Domestic magnesium prices rallied recently, driven by rising coal and FeSi prices along with tightening supply at smelters. Mainstream magnesium prices were being quoted at RMB30,500~31,000/t ex-works with taxes in Fugu Shaanxi last Friday, with some transactions closed at RMB30,500/t, an increase of RMB4,500/t w-o-w. Between 20thAugust and 3rd September, domestic magnesium prices surged by RMB8,300/t.
However, a significant crunch in downstream demand has been weighing on rallying magnesium prices since 2nd September, slowing the price spike. Industry commentators forecast domestic magnesium prices to remain at high levels next week in view of tight supply at smelters, strict energy consumption controls and application of environmental rules.