China Nonferrous Metals News
Domestic magnesium prices soared to RMB41,751/t in September, up by 229% m-o-m. The average magnesium prices from January to September 2021 grew by 51.26% y-o-y to RMB20,424/t.
The ‘dual control’ policy as well as power rationing implemented in major magnesium producing provinces has led to suspensions and capacity cuts at local smelters and consequently, a severe supply shortage. Recently rallying FeSi prices have propped magnesium prices as well.
Some Fugu magnesium smelters began resuming operations from 1st October, with an operational rate of 40% at present. Local Fugu smelters are holding limited stocks onsite and are tending to hold firm on prices. As of 9th October, mainstream magnesium prices in Fugu were RMB50,000/t ex-works.