Asian Metal News
31st August: Rising COVID numbers and more stringent pandemic control policies have forced suspension of several coal mines in Shenmu and Fugu, propping coal prices to RMB 1,500/t, which is up by RMB 300/t from last week. In addition, slowing logistics and low levels of coal stocks have forced some smelters to cut semi-coke and magnesium production, consequently driving up magnesium prices to RMB 26,300~26,800/t, an increase of RMB 2,300/t from last Thursday. The spike in prices has beat buyers’ expectations, resulting in a flat market this week and industry commentators forecast domestic magnesium prices to dip slightly next week given watchful buyer sentiment.
A downstream buyer noted spot magnesium quotations hovering at RMB 26,500/t ex-work by cash at present, but held back procurements given sluggish downstream demand. The buyer bought 62 tonnes of magnesium ingot at RMB 25,000/t last Saturday before the price surged to RMB 26,000/t and he expects prices to edge down slightly next week.