Asian Metal News
Fugu Shengxin Magnesium suspended magnesium production on 3rd July as a result of hot weather, furnace upgrades and increased environmental pressures. The company plans to run maintenance of 20 days and intends to resume normal operations with daily output of 30 t by end-July.
Designed with 20 ktpy magnesium capacity, the company produced 1.1 kt of magnesium in June and expects to produce 200 t of magnesium in July. It produced 11 kt of magnesium in 2020, has made 5.8 kt in the year to date and currently holds 300 t of magnesium ingot in stock.
Mainstream magnesium prices in Shaanxi rose by RMB400/t from last Friday to RMB19,400~19,500/t ex-works. Some magnesium smelters are withholding quotations amid market uncertainty, but other transactions are still proceeding. Industry commentators are bullish about magnesium prices over the short-term in consideration of shrinking supply and low inventory at smelters.