Asian Metal News
Fugu Jinwantong magnesium smelter suspended operations on 10th May and has no plan to resume in the short term. The company produced 900 t of magnesium in May, down from 2.8 kt in April.
According to an internal source, the company suspended operations in response to the local authority’s request that all semi-coke furnace under 75 kt capacity must be suspended on 10th May. “Thirteen local magnesium smelters in Fugu are involved. We have semi-coke furnaces with capacity no less than 75 kt in place but are still awaiting notification from the government as to whether these furnaces can be used.”
Designed with 45 ktpy capacity, the company produced 41 kt of magnesium in 2022 and 8.7 kt in Q1 2023. It currently holds 3.2 kt of magnesium in stock.
Mainstream magnesium prices remain stable, standing at RMB 26,300~26,800/t ex-works by cash. Industrial commentators forecast prices to stay firm with some possible uptick over the short-term, while transactions are expected to stagnate.