Asian Metal News
Jinwantong Magnesium smelter in Fugu Shaanxi reduced daily production by 30% to approximately 68 t. The company produced 3 kt of magnesium in July and 2.9 kt in August 2022.
Designed with 40 ktpy magnesium capacity, Jinwantong Magnesium produced 35 kt of magnesium in 2021 and 24.5 kt in the year to date. It currently holds 2.6 kt of magnesium ingot in stock.
Increasing COVID numbers have interrupted mining operations and logistics of coal, resulting in surging coal prices. Slower logistics have also been causing additional pressures for local magnesium smelters in Fugu Shaanxi. Magnesium prices lifted by RMB 2,000/t from last Friday to RMB 26,000~26,500/t on Tuesday in Shaanxi, but transactions were few. Industry commentators forecast domestic magnesium prices will hover around the current level this week.