China Nonferrous Metals News
Domestic magnesium prices have been fluctuating between RMB 20,200~ 28,700/t in during April, with average monthly prices at RMB 24,038/t, down by 37% m-o-m. The average price during the first four months of 2023 was RMB 21,981/t, down by 48% y-o-y.
The news of semi-coal furnace retrofitting in mid-April triggered a spike in magnesium prices, however due to lackluster demand, prices fell under the pressure of slowing transactions late in the month. Magnesium prices are likely to trend up slightly in May led by shrinking supply in the wake of the semi-coke retrofitting policy being rolled out in Shaanxi during the month.
China produced 203.2 kt of magnesium from January to March 2023, down by 14% y-o-y. Magnesium production in Shaanxi dropped by 15% y-o-y to 128.5 kt and Shanxi fell by 15% to 43.7 kt during the first three months of 2023.