Asian Metal News
Fugu Taida magnesium smelter resumed operations on 12th December with daily production at 90 t after the COVID-Zero policy lifted in Shaanxi.
According to an internal source, “We cut our daily production to 50 t per day in late November led by production costs exceeding prices as well as slow sales of semi-coke. Later, we suspended all operations due to strict COVID-curbs in early December. Recently, with relaxed COVID control (and in consideration of workforce stability), we resumed operations on 12th December 2022”.
Designed with 36 ktpy magnesium capacity, the company intends to produce 1.6 kt of magnesium in December, down by 1.2 kt m-o-m. It currently holds 1.7 kt of magnesium in stock. Fugu Taida produced 33.5 kt of magnesium in 2021 and has made 31.1 kt in the year to date.
Mainstream magnesium prices fell by RMB 500/t from last Friday to RMB 21,500~21,600/t this week led by a weak market. Market commentators forecast domestic magnesium prices to fall further by RMB 200/t this week.