Asian Metal News
Fugu Jinchuan magnesium smelter resumed operations on 12th December, with daily production at approximately 50 t and monthly production at 900 t during December.
According to an inside source: “We suspended operations on 3rd December led by production costs higher than prices, weak prices and slow sales of semi-coke along with stringent COVID curbs interrupting operations. In the wake of relaxed COVID policies, it was decided that long-term idling would result in frozen equipment during winter and loss of workers, so the company restarted operations on Monday, despite production costs still standing significantly higher than prices”.
Designed with 20 ktpy magnesium smelting capacity, Fugu Jinchuan produced 1.5 kt of magnesium in November and currently holds no stock. The company produced 17.5 kt of magnesium in 2021 and has made 15.6 kt in the year to date.
Mainstream magnesium prices are currently at RMB 21,700~21,800/t on the spot market in Shaanxi, down by RMB 400/t from last Friday. In light of weaker demand and fierce prices competition among sellers, industry commentators project magnesium prices to fall further next week.