China Nonferrous Metals News
China produced 58 kt of primary magnesium in February 2019, showing a decline from January, chiefly due to the Yinman Mining accident in IM. Domestic magnesium prices have been hovering between RMB 16,950~17,150/t in February, with the monthly average price at RMB 17,025/t, up 13.58% on-year.
The accident at Yinman Mining, IM on 23rd February 2019 has had a significant impact on the local coal market, shrinking supply and boosting prices rapidly. As a result, magnesium prices have increased and some magnesium smelters have had to temporally suspend or halt operations due to severe coal shortages. Magnesium prices are expected to lift further, with the coal supply shortage problem unlikely to ease in the short-term as well as ongoing safety checks in coalmines of IM and uncertainties about coalmines resuming production at Shenmu Shaanxi. Downstream buyers are remaining watchful about the continual growth in magnesium prices.
Looking forward to March, daily magnetisms prices are expected to hover between RMB 17,000~18,000/t and FOB prices will be stable at USD 2,640~2,760/t FOB.