Asian Metal News
Domestic magnesium prices soared rapidly by RMB 3,000/t from last Friday to RMB 26,500~27,000/t on Tuesday led by panic buying after the news on 7th May regarding suspensions of all semi-coke furnaces under 75 ktpy in Fugu Shaanxi from 10th May. Some magnesium smelters were reluctant to sell and kept firm on prices, however actual transactions were sparse as the rapid price hike beat buyers’ expectations. In view of smelters’ strong will to shore prices, industry commentators project prices to stay elevated at high levels over the short-term.
A northern magnesium smelter sold 62 t of magnesium at RMB 26,500/t by cash last Friday and raised the quote to RMB 27,000/t by cash this Tuesday in consideration of th semi-coke furnace suspension policy which begins on 10th May. In view of further capacity cuts led by suspension of semi-coke furnaces and smelters’ strong will to prop prices, magnesium prices are expected to hold firm at high levels next week.