Asian Metal News
Fugu Shengxin magnesium smelter produced 1 kt of magnesium in January 2024, up by 300 t m-o-m.
The company suspended magnesium production on 20th January 2024 due to interrupted semi-coke gas supply amid high costs as well as depressed magnesium prices. A company spokesperson said, “We have been grappling with the issues of production cost over price for quite a while, with our resumption time undecided as yet.”
Designed with 15 ktpy magnesium capacity, the company produced 4 kt of magnesium in 2023, 700 t in January 2024 and expects no production in February.
Mainstream magnesium prices slid by RMB 100/t from last Friday to RMB 20,000~20,300/t this week. In view of slower logistics and with most buyers finishing replenishment ahead of the CNY holiday, the market appears flat this week. Industry commentators forecast prices likely to keep weak at the current level next week.